Financial literacy and participation in the financial markets in Tanzania: An application of the logit regression model

Journal of Economic and Financial Sciences


 
 
Field Value
 
Title Financial literacy and participation in the financial markets in Tanzania: An application of the logit regression model
 
Creator Epaphra, Manamba Kiwia, Brenda P.
 
Subject financial literacy; financial markets; logit modelling; regression model; Tanzanialiteracy; financial markets; logit modelling; regression model; Tanzania
Description Background: Financial market participation is explained from the viewpoint of financial literacy, awareness, investors’ risk aversion, and cost of stock market participation but could not be successful. As a result, households’ lack of participation in the stock market remains a puzzle across the world.Aim: The paper examines the factors determining the participation of individuals in the financial markets using the logistic regression model. Categorical data covering a sample of 484 were collected from individuals residing in Arusha, Tanzania.Conclusion: Male and married individuals, as well as people with financial knowledge have a better chance of investing in the financial market despite their education level. Other variables such as risk attitude and level of income play a significant role in influencing individuals’ participation in the financial markets. The policy implication of these results is that increasing training, awareness of the benefits and operations of the financial markets will result in people opting to participate in the financial market, which will, in turn, lead to increased trading of financial assets and hence create a ripple effect to the economy.
 
Publisher AOSIS
 
Contributor
Date 2021-03-17
 
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion —
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/jef.v14i1.545
 
Source Journal of Economic and Financial Sciences; Vol 14, No 1 (2021); 13 pages 2312-2803 1995-7076
 
Language eng
 
Relation https://jefjournal.org.za/index.php/jef/article/view/545/1201 https://jefjournal.org.za/index.php/jef/article/view/545/1200 https://jefjournal.org.za/index.php/jef/article/view/545/1202 https://jefjournal.org.za/index.php/jef/article/view/545/1199
 
Rights Copyright (c) 2021 Manamba Epaphra, Brenda P. Kiwia https://creativecommons.org/licenses/by/4.0