Factors Influencing Individual Investor Participation in Stock Market

Mwamtambulo, Dorika Jeremiah

doi:10.1007/978-3-030-73667-5_4

Cited by 2 publications

(2 citation statements)

References 34 publications

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“…TOL gas limited was the first company to list its shares at Dar es Salaam stock exchange. Despite of gross domestic product (GDP) growth at 5.9% in Tanzania, higher than world gross domestic product of 5.8% yet civil servants participation in stock trading is low (BOT, 2021;Mwamtambulo, 2021). It is through stock market participation that civil servants transform their personal savings into investments.…”

Section: Introductionmentioning

confidence: 99%

Participation of Civil Servants in Dar es Salaam Stock Exchange, Tanzania

Macha

2023

JBSEE

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Purpose: This study examined the behavioural factors that influence civil servants’ participation in stock exchange trading. The trading of stock can assist existing or new firms to obtain long-term and reliable financing resource easily and quickly. Thus, to improve the stock market and the economy as a whole, active participation of various players is important to increase the level of liquidity in the financial markets. Design/Methodology/Approach: A cross sectional survey of two hundred sixty-eight civil servants working in urban areas was conducted by using questionnaires with likert scale type of questions. The data was analyzed by using structural equation modeling (SEM) method. Findings: The results revealed that awareness and subjective norms are related to the respondents’ intention to participate in stock exchange trading positively. However, perceived costs, perceived risks and attitude had no significant effect on civil servants’ intentional behaviour. Implications/Originality/Value: The result implies that policy makers should plan strategies that can enhance the respondents’ awareness and involve people who can pressure the civil servants to participate in stock markets trading. Cross sectional data collected in this study may need to be examined again in future when certain variables have changed, like education background or improvement in the dissemination of stock market information.

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Section: Introductionmentioning

confidence: 99%

Participation of Civil Servants in Dar es Salaam Stock Exchange, Tanzania

Macha

2023

JBSEE

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“…They have addressed numerous factors affecting participation, such as; financial return, income, awareness, and technology. However, locally current studies (Mwamtambulo, 2021;Epaphra & Kiwia, 2021) covered different factors like income, advice from friends and brokers, and financial knowledge. However, they rarely addressed awareness factors that may affect the investment decision of individuals.…”

Section: Introductionmentioning

confidence: 99%

Individual Investors’ Awareness and Participation in the Dar es Salaam Stock Exchange, Tanzania

Mwakabumbe,

Temu,

Kazungu

2023

PAJBM

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Participation of individual investors in Dar es Salaam stock markets stands at 1%, which is very low compared to Kenya, which is currently at 4%. Thus, the study evaluated the level of awareness of individuals that explained their low participation in the Dar es Salaam stock exchange. Primary data were collected from 200 participants and 200 non-participants and analysed using descriptive statistics and binary logistic regression. Findings revealed that non-participant individuals had a low level of awareness regarding DSE and its activities compared to individual participants. Regarding voting and decision-making by shareholders, only 13% of participants were aware of this right. Financial awareness was also found out to be low among individuals. Binary logistic results indicated that awareness of DSE, awareness creation seminars, and access to media were likely to influence individuals' participation decisions. Thus, the study concluded that the level of awareness among individuals was deficient and affected their participation in the stock market. Therefore, the intensification of public awareness through seminars by DSE is essential. Also, DSE should increase the use of mobile trading platform and internet technologies to disseminate awareness information on investment opportunities for participation decision.

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Factors Influencing Individual Investor Participation in Stock Market

Cited by 2 publications

References 34 publications

Participation of Civil Servants in Dar es Salaam Stock Exchange, Tanzania

Participation of Civil Servants in Dar es Salaam Stock Exchange, Tanzania

Individual Investors’ Awareness and Participation in the Dar es Salaam Stock Exchange, Tanzania

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