Gender Differences in Investment Behavior among Employees: A Study of Employees of Safaricom Limited

Abstract

The purpose of the study was to determine if there are any gender differences in investment behavior among employees in Kenya using a case of Safaricom Limited employees. The following research questions underpinned the research study; Are there gender differences in investing decisions? Does financial socialization contribute in determining gender financial behavior? Do gender differences exist in financial literacy? A descriptive research design was adopted for the study of this research problem. The target population for this study was 4500 employees of Safaricom Limited. In selecting the sample size, a stratified sampling technique and purposive sampling was used. The study used a formula to arrive at the sample size of 94 employee of Safaricom limited. The study used a survey questionnaire administered to each member of the sample population. The study administered the questionnaire individually to all respondents of the study. This study collected both primary and secondary data. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS (Version 20) and presented through percentages, means, standard deviations and frequencies. The information was displayed by use of bar charts, graphs and pie charts and in prose-form. This was done by tallying up responses, computing percentages of variations in response as well as describing and interpreting the data in line with the study objectives and assumptions through use of SPSS (Version 20) to communicate research findings. Content analysis was used to test data that is qualitative in nature or aspect of the data collected from the open ended questions. The research was able to demonstrate the extent to which gender differences contribute in determining gender financial behavior. From the research findings, it was established that gender difference contribute in determining gender financial behavior to a great extent. The study further revealed that there was a negative relationship between gender differences and investing decision among employees of Safaricom Limited. The significance of financial socialization and financial literacy in determining gender financial behavior was noted to be significant. The conclusion on the research was that gender differences affect the investment decision. It was further concluded that financial socialization and differences in financial literacy contribute in determining gender financial behavior. The research recommended that there should be specific policies aimed at increasing women’s confidence in investment as they were found to display an increased risk aversion compared with men. It further recommended that financial socialization should not be discriminative on the basis of gender and should start at the earliest age possible. Finally women should seek financial literacy as a way of eliminating gender differences in investment behavior. As a recommendation for further research, a study on the factors that are considered by the different genders in investment decisions should be explored.