Determinants of Investment Behavior of Ethiopian Banking Employees Towards Selected Investment Avenues
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Date
2015-05
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Abstract
nvestment is an activity that is engaged in by people who have savings i.e. investments are made
from savings, or in other words people invest their savings. A variety of investment options are
available such as bank, Real estate, Shares/Equities, Government Bond, Life Insurance & so on.
Investors are investing their money with the different objectives such as profit, security,
appreciation, Income stability, Future goals or desires, social responsibility. The decision of
individual investors towards different investment avenues is influenced by demographic, social
and Psychological factors. The study examined determinants of Ethiopian banking employee’s
investment behavior towards selected investment avenues. The objective is to examine banking
employees’ behavior towards five investment avenues: Bank Deposit, Shares/Equities, Real
estate, Government Bond and Life insurance. The study was adopted quantitative reaserch
approach in order to draw the relationship between factors affecting individual investment
decisions and choice of investment avenues. The study selected a sample of 385 banking
employees based on stratified simple random sampling for both public and private banks.. The
study is based on primary sources of data which are collected by distribution of a close ended,
self administered questionnaire. The data has been analyzed using percentage, chi-square test,
Person Correlation Coefficient, Mann- Whitney U test, Kruskal – Wallis test and two sample T
test, and correlation with the help of statistical software (SPSS 20). The study found that the
choice of investment avenues by bank employees are significantly influenced by age, Gender,
marital status, family size, investment objective, risk and return level of investment, moral
satisfaction, religion, culture and desire and goals.
Key Terms: Investment Avenues, Behavioral Finance, Banking employees
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Investment avenues, Behavioral finance, Banking employees