Factors shaping individual investor participation in government securities : case of Livingstone district.
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Date
2020
Authors
Katongo, Chewe
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
Individual investor participation in government securities is critical for both financial market development and government funding. This study delved into the factors influencing individual investors' decisions to participate in government securities, focusing on the Livingstone District. Utilizing a mixed-method approach involving surveys and interviews, the research aimed at comprehensively analysing the determinants of investor behaviour in this specific context. The study identified five key factors shaping individual investor participation in government securities within the Livingstone District. First, demographic characteristics such as age, income level, and education significantly impact investment decisions. Second, socioeconomic factors included employment status and financial literacy influence investors' perceptions and attitudes towards government securities. Third, risk perceptions and the perceived safety of government securities play a pivotal role in shaping investor behaviour. Moreover, access to information and investment channels emerged as crucial determinants, highlighting the importance of market transparency and investor education initiatives. Findings: Investment Experience: the revealed findings revealed that 64.29% of participants have previously invested in government bonds and securities, indicating a certain level of familiarity with the asset class. Findings: Risk Assessment Methods: Investors predominantly assess risk using credit ratings, market trends, historical performance, and economic indicators. Rating: The majority of participants rated the economic conditions as either Average or Good, indicating overall positive sentiment. Motivating Factors: Investors are primarily motivated by factors such as stability, low risk, fixed income, and tax benefits associated with government securities. Finally, institutional factors such as regulatory frameworks, market infrastructure,
and investor support services significantly influenced investor confidence and participation. Through a combination of quantitative surveys and qualitative interviews, the research provided a nuanced insights into the complex behavioural dynamics underlying individual investor participation in government securities.
Description
Thesis of Master of Business Administration (MBA).