Factors determining the investment behaviour of farmers – the moderating role of socioeconomic demographics

Purpose The purpose of this study is to investigate the determinants that determine the investment behaviour of rural farmers. This study further examines the moderation effect of socio traits in the association between investment behaviour and its determined factors. Design/methodology/approach This study used a cross-sectional research design to gather information. The information for this research survey was gathered using a structured questionnaire from 400 individual investors in the rural area of Punjab, who participated in the study. It has been decided to use the Cronbach’s alpha test to determine the validity and reliability of the questionnaire. To evaluate the hypothesis, structural equation modelling has been used in the research process. Findings The results of this study reveal that attitude, financial risk inclination, financial planning and investment intention determine the investment behaviour of the rural people of Punjab. The results for the interaction effect of socio traits with investment intention, financial risk propensity and investment attitude were found statistically significant amongst rural people. The results of the moderation effect stated that interaction between the attitude and investment intention and financial risk propensity and investment intention is significantly influenced by age of respondents. The results further reveal that marital status of rural people affect the interaction between attitude and investment intention and financial risk propensity and investment intention. Nothing about education seems to be a moderating influence on any of the relationships studied. Originality/value The authors contribute to the literature in two aspects. Firstly, to the best of the authors’ knowledge, this is the only study of its kind that focuses on the investment behaviour of farmers. Secondly, by looking at the farmer’s investing behaviour, the moderation effect of demographic variables is also studied which set this study apart from another existing scholarly research. This study contributes to the growing literature on investment behaviour of farmers in developing and developed markets.