Determination of Stockbrokers' Perceived Techniques for Mobilizing Nigeria Civil Servants to Invest in Shares (original) (raw)
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Stockbrokers' Perceived Techniques for Mobilizing Nigerian Civil Servants to Invest in Shares
The study was aimed at finding out the techniques perceived by stockbrokers for mobilizing Nigerian civil servants to invest in shares. Two research questions and two null hypotheses tested at 0.05 level of significance guided the study. The population of the study was all the 354 stockbrokers from the SouthEast geo-political zone of Nigeria. A structured questionnaire was used for data collection. The reliability of the instrument was established using Cronbach Alpha research technique which yielded the reliability coefficient of 0.80. Out of 354 copies of questionnaire distributed to the respondents, 324 copies were returned and used for data analysis. Data collected for the study were analyzed using mean ratings for research questions and z-test for the null hypotheses. The major findings revealed amongst others that organizing seminar and workshops, holding talk-shows, circulation of share subscription forms to various ministries, and information on various benefits associated w...
The Nigerian Stock Exchange and the Private Investor
Journal of Interdisciplinary Economics, 1995
The findings of this research suggests that the Nigerian private investors like their counterparts elsewhere (e.g. the U.S.A. and the U.K.) do like both capital appreciation and dividend income. Furthermore, the majority of the respondents preferred to invest in ordinary shares rather than in any other securities on the Stock Exchange. Indeed it was found that other forms of securities, especially the government development stocks or bonds, were little known to the respondents. The majority of the respondents (57.9%, Table 4) appeared to take investment decisions on their own initiative rather than acting on the advice of stockbrokers or other experts, and that they often rely on company reports for market information. This is perhaps due to lack of clear understanding of the role of the stockbrokers in investment advice. The respondents showed a great reliance on three main sources of market information for investment decisions [company reports (34%), stockbrokers/or experts (27%),...
WSEAS transactions on business and economics, 2022
Behavioural finance theory posited that the actions of individual investors have demonstrated that people appear to respond to and perceive the same information differently, generating psychological biases that are defined as Behavioural Factors. It is against this backdrop that this study empirically examines the effect of behavioural factors on investment performance. This study examines behavioural factors (Heuristics, Prospects, Herding, and Market) that influence stock investors' performance in Nigeria's capital market. Three hundred and eighty-four (384) respondents were sampled by an online survey method through a questionnaire from active investors using the top ten brokerage firms in Nigeria. Data were examined and analyzed by STATA software using the structural equation model technique (SEM) as the statistical tool. The data revealed a considerable positive link between behavioural factors indicators and investment performance. The study, therefore, recommends that NSE should continuously share information, and train the investors, which is geared towards positively influencing investment decisions. Through this information, investors will be in a position to make wise investment decisions. NSE should also evaluate the influences of prior events in relation to the specific counter under investigation. More so the effect of the learning process should be clearly evaluated to ensure that there is maximum benefit for all parties involved in selling and buying a security share.
International journal of scientific and research publications, 2022
Investment decisions are usually influenced by various market factors including public and private information factors. The major goal of this research was to look into the market characteristics that influence individual investors' investment performance in the Nairobi Securities Exchange. The investigators hypothesized that H01: Market factors (public information and expert information) do not have a substantial impact on individual NSE investors' investment results. The investigator used a survey study design to reach the aim of 1,196,995 individual investors on the Nairobi Securities Exchange. The Slovin's method was used to estimate the 400 sample size of a population, while the researcher used the Nairobi Securities Exchange's top limit of 500 individual investors. To acquire primary data, a structured questionnaire was used. The study found that public information has a considerable impact on individual investors' investment success on the NSE, whereas expert knowledge does not. The researcher recommends that the capital market authority should come up with sensitization programme which can be done through the brokerage firms to provide public information. The training for the individual investors may be organized through the media such as the radio and television to promote availability of public information to individual investors in NSE. The policy makers should also introduce training programs for the individual investors of the stock market to enhance the culture of using market information that will reduce the influence investment performance.
e study seeks to determine the main factors in uencing investment decisions of investors and how these factors are related to the investors' socioeconomic characteristics in the Nigerian Capital Market. e study covers individual investors using convenient sampling method to obtain information om 297 respondents through a modi ed questionnaire developed by Al-Tamimi (2005). Independent t-test, Analysis of variance (ANOVA) and post hoc tests were employed. e results indicate that the ve most in uencing factors on investment decisions of investors in Nigeria are past performance of the company's stock, expected stock split/capital increases/bonus, dividend policy, expected corporate earnings and get-rich-quick. Also, the ve least in uencing factors include religions, rumors, loyalty to the company's products/services, opinions of members of the family and expected losses in other investments. e study nds that the socioeconomic characteristics of investors (age, gender, marital status and educational quali cations) statistically and signi cantly in uenced the investment decisions of investors in Nigeria. With regard to the past performance of the company's stock as an assessing factor, groups of investors statistically di ered in factor assessment, as segments of a group considered the factor as the most important/unimportant. Since the identi ed most in uencing factors are usually classi ed as wealth maximising factors, the study recommends that the investment climate and the market environment be made iendly and conducive to a ract investors by creatively developing programmes and policies that impact on investors' decisions in order to maximise the value of the rms and enhance the wealth of the investors. e market players should re-organise the market and implement accommodating policies which will eliminate aud and resolve the leadership crisis in the market.
Determining the Factors That Affect Investor Participation in the Nairobi Securities Exchange
2014
The main aim of this study was to analyze the factors that affect investor participation in the Nairobi Securities Exchange. It specifically sought to answer the questions: Does cognitive ability affect investor participation in the Nairobi Securities Exchange (NSE)? What information do investors seek to enable them to readily invest their money and how information availability affects their participation? The study was also intended to find out whether investor confidence was a major factor that could affect investor participation in the Nairobi Securities Exchange? The study used a descriptive research design and simple random sampling to study the 110 respondents of this study. The populations of this study were the 1.4 million investors in the NSE. Primary data was gathered using a questionnaire. The data that was collected was then edited, coded, transcribed and then cleaned. Data was analyzed using a computer application package known as Statistical Package for Social Scientists (SPSS). SPSS was used to find the frequencies of the variables and the correlations between them.
Limited Stock Market Participation In Ghana: A Behavioral Explanation
The level of participation in stock markets has generally been low, leading to a phenomenon called the stock holding puzzle. There is a general agreement that participation levels in the Ghana stock Exchange are extremely low. The Ghana Statistical Service reveals that approximately (only) one (1) percent of Ghanaian households hold shares of stock. Many have attempted to explain this phenomenon using the basic features of a stock which are its risk and return components. Despite the extensive research conducted to find rational explanations to the stock holding puzzle and the general agreement that there exist a risk-return tradeoff in the stock market, these studies have not been able to give a conclusive explanation to the stock holding puzzle. This study therefore seeks to find out the behavioral factors that influence an individual or household’s decision to participate in the stock market in Ghana and to generally investigate the determinants of stock market participation in the country. The study employed an empirical regression model based on the behavioral finance framework which has been used by several studies. The research revealed that awareness of the stock market, trust, education and herding behaviour, were positively and significantly related to stock market participation in Ghana. The study therefore recommended that, the Ghana Stock Exchange should embark on a massive public education programme to create public awareness of the stock market.
The International Journal of Business & Management, 2019
Trading in investment started in the 1800s whereby mutual funds flourished in Great Britain and in the United States. This trade later spread to other continents and countries around the world (Anderson, Born and Schnusenberg, (2010).Securities exchanges provide avenues where financial securities can be traded. Companies in turn are able to raise funds by trading their securities in the exchange market. Carmichael and Pomerleano (2002) agree that capital markets aid in marshalling both local and international capital. Stock market makes significant contribution to the general financial well-being of a country. Emerson (1976), for instance, observed that the liquidity of the market for stock predicts economic growth, capital accumulation and stock markets existence which accelerate the increase of productivity growth rate. Olweny, Namusonge and Onyango (2012) found a positive relationship between the securities market and economic growth in Kenya. Demirgüç-Kunt and Levine (1996) found that countries with well-developed stock markets also had more advanced banking and nonbank financial mediating institutions like investment firms, brokerage houses and mutual funds. Contrary, countries with weak stock markets had weak financial intermediaries. This shows that the development of the market for stocks adds to the general growth of the economy since it goes hand in hand with other facets of financial development. To the individual investors participation in the stock market results in higher returns and improves their wellbeing considerably. Mehra and Prescott (1985) report that investors in the stock market amass more wealth when compared with nonparticipants in the stock market because of the numerous benefits that they obtain from participating. Guvenen (2006) similarly reported that nonparticipation in the stock market built great disparities in terms of wealth. Mankiw and Zeldes (1991) further revealed that participants in the stock market enjoyed higher consumption in their lifetime. This suggested that it would be better for an individual to take part in the stock market as nonparticipation results in lower returns. Despite these benefits, securities market in Africa has been observed to be generally underdeveloped and especially the Sub-Saharan financial system which has been found to be the least developed based on pointers of economic progress. Allen, Otchere and Senbet (2011) observed that African stock markets encounter key challenges in terms of depth in both listing and market capitalization. The findings showed that stock exchange markets of Africa, excluding Egypt and South Africa, remained the least compared to other regions in the number of companies listed and market capitalization. This clearly shows the low participation rates for investors in many African countries. The study further
ASSESSING CURRENT PERFORMANCE, ISSUES AND OPPORTUNITIES IN THE NIGERIAN CAPITAL MARKET
Cognizance Journal of Multidisciplinary Studies, 2022
The Nigeria capital market has not witnessed obvious transformation over the years. The research aimed at Assessing Current Performance, Issues & Opportunities on the Nigeria capital market. An empirical survey based on secondary data & primary data procured from Lagos Stock Exchange, Central Bank of Nigeria (CBN) and Securities & Exchange Commission. A total number of one hundred and twenty (120) copies of questionnaire were administered to staff of financial regulatory sectors respectively for which (80) were used for analysis. After cleaning and sorting the copies of the accepted questionnaire they were fed into the statistical package for social science (SPSS). The questionnaire was structured in line with the research objectives, questions and hypothesis of the study. The Pearson product moment correlation coefficient was used to confirm formulated hypotheses. The findings indicate that the rate of capital market performance is low and has not contributed effectively to Nation gross domestic product (GDP). The capital market, stock market which are the major players in the Nigeria economy diminished as shown in Tables. The Nigeria stock exchange (NSE) All share index greatly collapsed. The study concluded that policies like improvement in the institutional quality, enhancement of Nigerian security challenges to make Nigeria an investorfriendly nation, encouragement of the local industries by supporting small and medium enterprises, and enhancement of international trade between Nigeria and other countries will be suggested to Nigerian government as a way to improve stock market performance.