An empirical analysis on investors perception toward Stock trading with reference to State of Odisha

Abstract

newline In the evolving landscape of capital markets, understanding investor perception is increasingly crucial, especially in emerging economies like India, where regional disparities in financial inclusion are pronounced. This study, titled An Empirical Analysis on Investors Perception Towards Stock Trading with Reference to the State of Odisha, explores the behavioural, economic, and informational determinants influencing stock market participation in a traditionally conservative investment region. Utilizing data from 428 respondents across Odisha and employing Structural Equation Modelling (SEM), the research examines the effects of Financial Literacy (FL), Economic Factors (EF), and the Influence of Media and Financial Advisors (IMFA) on Investor Perception Toward Stock Trading (IPST). The findings indicate that financial literacy significantly boosts investor confidence and mitigates cognitive biases such as loss aversion and herd behaviour, while economic variables like income volatility and interest rate expectations dampen investment enthusiasm, particularly in rural areas. The dual role of media and financial advisors is also highlighted, where trusted guidance encourages participation but sensationalized reporting heightens risk aversion. The study underscores a pressing need for region-specific financial education, improved digital infrastructure, and targeted policy interventions to enhance investor awareness and market inclusivity in Odisha. By situating stock trading behaviour within Odisha s unique socio-economic context, this research enriches the behavioural finance literature and offers actionable insights for regulators, policymakers, and financial educators aiming to bridge the urban-rural investment divide.