Original scientific paper
UNDERSTANDING INDIVIDUAL INVESTORS IN THE WESTERN BALKANS
Miloš Grujić
orcid.org/0000-0001-5566-5921
; Nezavisni univerzitet Banja Luka, BiH
*
Isidora Džombić
orcid.org/0009-0005-5303-9405
; Grant Thornton d.o.o. Banja Luka, BiH
* Corresponding author.
Abstract
The main objective of this research is to investigate the complex interplay between education, investment experience, and specific socioeconomic characteristics, and their resulting influence on the behavior and decision-making of individual investors in the Western Balkans. The study particularly focuses on investors’ attitudes towards different financial asset classes, including stocks, bonds, and mutual funds. Using a quantitative research methodology, based on a survey of individual investors, coupled with a comprehensive analysis of extant literature, this study aims to test several key hypotheses regarding investor behavior in this specific transition market context. The analysis reveals a notable, statistically significant correlation between higher educational attainment and increased risk tolerance, suggesting that education fosters a greater appetite for risk. Furthermore, the length and nature of investment experience are found to significantly shape both the perception of market knowledge and overall investor confidence. Socioeconomic factors, such as age, gender, and occupation, also play a crucial role in shaping preferred investment strategies and portfolio allocation. These findings underscore the critical need for customized financial literacy resources and targeted educational programs designed to enhance the decision-making processes of individual investors in the region and mitigate potential investment risks. The paper concludes by outlining directions for future research, which should include larger, more diverse samples, a greater focus on female investor representation, and an examination of psychological biases and macro-financial influences specific to the Western Balkans.
Keywords
Individual investors; investment behavior; Western Balkans; education
Hrčak ID:
343039
URI
Publication date:
7.1.2026.
Visits: 280 *