Abstract:
The study aimed to examine the influence of financial literacy on stock market participation among university lecturers in Tanzania. Specifically, was aimed to examine the level of financial literacy among university lecturers, to determine the level of participation in the stock market among university lecturers, and to assess the effect of financial literacy on the intention to invest in the stock markets among university lecturers. The study employed a quantitative research approach with a descriptive survey research design.
A total of 50 respondents were randomly selected and invited to participate in the study. The researcher used the questionnaire as the main data collection instrument whereby cross-tabulation, Chi Squire, ANOVA, and regression analysis through SPSS version 20 software was used for data analysis. The study revealed that university lecturers had a high level of financial literacy with great knowledge of both basic and advanced finance ideologies. Secondly, the study showed that individual participation among university lecturers in the stock market was low. This implies that although university lecturers are financially literate, their influence of financial literacy on stock market participation is still low. Thirdly, the study also revealed that there was less intention to invest in the stock market among university lecturers despite having financial literacy. The investigation additionally looked to build up impacts of financial literacy, gender, age, and salary on financial exchange interest.
The study concluded that there is no significant influence on financial literacy on stock market participation among university lecturers. The study recommends that there is a high need for Dar es Salaam Stock Exchange (DSE) and Capital Market and Security Authority (CMSA) stakeholders to motivate and provide adequate awareness among university lecturers on potential benefits to invest in the stock market. The researcher recommends that studies could be undertaken on all university lecturers in Tanzania to investigate the influence of financial literacy on stock market participation.
