Authors : A.K. Nasruddin, A.I. Gau and P. Hsu
Abstract: Investing is a daunting task for potential investors since the avenues for investment are more diverse than ever. Investment options such as stocks, bonds and real estate each have common characteristics such as potential return and risk. It is crucial for investors to decide how much risk they can tolerate since higher returns are associated with higher risk. In this study, we measured the responses of 602 participants in Makassar who favor real estate investment over stock options. By using weighted average scores method of a total of 25 economic variables that affect investment decision 15 of these were found to have some level of importance for potential investors to participate in real estate investments. The participants were then asked to rank these variables based on their personal perceptions of their importance towards investing in the stock market. The respondents stated that 19 of these variables serve differing levels of importance. Inflation resistance was found to be the most influential variable for both real estate and stock investment avenues.
A.K. Nasruddin, A.I. Gau and P. Hsu, 2017. Comparative Analysis of Variables Affecting Preferences of Potential Investors for Real Estate or Stocks. International Business Management, 11: 1348-1352.