Evaluation of Financial Literacy on Financial Decision Making By Employees in The Hospitality Industry in Kenya: A Case of Serena Hotels

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Date

2017-03

Journal Title

Journal ISSN

Volume Title

Publisher

Daystar University, School of Business and Economics

Abstract

Over the past years, individuals have had to become increasingly responsible for their own financial security due to factors such as retirement. The purpose of this study was to assess financial literacy on financial decision making by employees in the hospitality industry in Kenya. The study was guided by the following objectives to establish the level of financial literacy of employees in Serena Group Hotels, to establish the relationship between financial literacy and the employees’ financial decision making and to determine the regulatory frameworks that enhance financial decision making. The target population of the study comprised 202 staff of Serena Group of Hotels. The sample size was 100 employees. The study adopted stratified sampling design. Data was collected using semi-structured questionnaires. Data was analyzed using SPSS version 23 and later presented using frequency tables and figures. The study established that a majority the respondents participated in banking and investment services. The study also revealed that financial literacy affected debt management in terms of the level of debt and understanding the terms and consequences of defaulting in debt payment. A majority of the employees at Serena Hotel considered the rise and fall of bond prices in determining the acceptable interest rate. The study recommended that there should be full information disclosure from the traders and the employer to individuals for better financial decision making. The study also recommended that the individuals should be encouraged to continuously train and learn financial concepts to influence their financial decisions.

Description

MASTER OF BUSINESS ADMINISTRATION in Finance

Keywords

financial literacy, hospitality industry, banking and investment services

Citation

Caroline, T. (2017). Evaluation of Financial Literacy on Financial Decision Making By Employees in The Hospitality Industry in Kenya: A Case of Serena Hotels. Daystar University, School of Business and Economics