An Evaluation of Factors Influencing Employees’ Investment Choices: A Case of Barclays Bank of Kenya
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Date
2012-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Daystar University, School of Business and Economics
Abstract
Investment habits have been noted by scholars to be very important aspect in financial management. The investment habits holding among individuals and household dictate the level of economic security which helps them cope with fall in income, the habits also creates a capacity to borrow and also providing avenues for alternative income generation. Investment choices are influenced by the socio economic environment where the investor is, the individual income level and culture. The environmental indicators include but not limited to economic productivity level, investment opportunities, levels of incomes and savings, employment rates and inflation rates. The purpose of this study was to evaluate the factors influencing employees’ investment choices. The objectives of the study were to determine the nature of investments employees make, to establish the proportion of the salary allocated to investments, to determine what informs investment decisions among employees and to identify challenges faced by employees in making investment decisions. Using cluster sampling method, a sample of 212 employees of Barclays Bank Kenya based in the Operations Function was studied. Questionnaires were used to collect data which was then analysed using SPSS 15.0. The findings were presented using frequency tables, charts and graphs. The study found that employees set aside more money for other investments other than pension. Their preferred investment areas included being real estate, stocks and group investments (chamaas). Financial institutions should target Chamaas to sell investment instruments to. There should be diversification of investment opportunities. Investment institutions should expand their products and lower the costs incurred in the acquisition of the same
Description
MASTER OF BUSINESS ADMINISTRATION
in Finance
Keywords
Investment habits, financial management.
Citation
Cheboror, E. J. (2012). An Evaluation of Factors Influencing Employees’ Investment Choices: A Case of Barclays Bank of Kenya. Daystar University, School of Business and Economics