Author(s): Noxolo Eileen Mazibuko, Chantal Rootman, Wise Mbewe
South Africa has a highly sophisticated financial sector that contributes significantly to the economy, and the stock market forms part of this. The Johannesburg Stock Exchange (JSE) has gained the interest of some South Africans, however, there appears to be apathy and inertia when it comes to actual stock market participation by South African consumers. The primary objective of this study was to identify the antecedents of stock market participation in South Africa. By identifying antecedents, opportunities could be created to increase stock market participation (investment), to ultimately ensure economic growth for the South African economy. In the empirical investigation of the study, a convenience sample of 295 respondents was employed to gather consumers’ perceptions. A structured questionnaire was used and data was analysed quantitatively. The empirical results showed statistically significant relationships between all the selected antecedent variables and stock market participation. Demographic characteristics, financial literacy, financial risk tolerance, communication and consumer trust influence stock market participation. The study contributes by providing practical recommendations to role players in the financial services industry in order to increase stock market participation and ultimately gain the benefits thereof, also for the broader economy.