Financial communication : is the Maltese private investor well-informed about the Malta Stock Exchange?

Abstract

The aim of this study is to investigate if the Maltese private investor is well-informed about the Malta Stock Exchange (MSE). An examination of the literature shows that when discussing financial communication one realises how heterogeneous the financial audience is. Thus, differential disclosure, information overload and a multi-level approach must be acknowledged to satisfy both sophisticated and unsophisticated investors. Price sensitive information affects consumer behaviour and as a result push technology and real time and historic providers have been developed. A study was conducted through a random stratified sample of 200 telephone surveys in Malta and Gozo, and eight in-depth interviews with listed stockbrokers. Results indicated that 23% invested on the MSE and 47.8 % of investors found financial information far too technical. Out of the sample, 10% never heard of the MSE. Media usage regarding financial information varied according to investor and non-investor.