Assessment of Perceptions of Shareholders towards the Benefits of Investing in Shares: The Case of Awash International Bank S.C.

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Addis Ababa University


The main focus of this paper is assessing the perception of shareholders towards the benefits of investing in shares. A questionnaire was answered by 86 respondents in Awash International Bank S.C. The sample of this study is relatively heterogeneous, which allows the researcher to have an overview of the perceptions and behavioral tendencies of a variety of shareholder groups in setting objectives, risk-taking, and in understanding the benefits of investing in shares. The majority of shareholders have long-term objectives and in general high risk taking tendencies were observed. In risk- taking, there is a significant difference between gender and among age categories. The findings suggest that the shareholders have inadequate knowledge of the benefits to be realized in relation to investing in shares. The problem spreads across a broad spectrum of shareholders of various categories, both genders, and different academic disciplines. Consistent with previous studies, the results have shown that female shareholders are less knowledgeable about the benefits than male shareholders; non-business majors are less knowledgeable than business majors, and institutional shareholders have better understanding than either individual or joint shareholders. The differences between these groups are statistically significant. The secondary data analysis also supports the hypotheses constructed. On the other hand, the corporate governance practices of the bank in protecting the rights of shareholders are collectively encouraging. Generally, the findings suggest that low awareness levels of the benefits of investing in shares exist among shareholders and the issue needs to be addressed



Investing in shares:, Awash international bank S.C