Determinants of Financial Literacy and its Effect on Stock Market Participation among University Students in Ghana

International Journal of Economics and Financial Issues Pub Date : 2024-03-18 DOI:10.32479/ijefi.15613

Marshall Wellington Blay, A. Musah, Charles Ayariga, Daniel Odei Okyere

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Abstract

The study examined determinants of financial literacy and stock market participation in Ghana. The study also examined the relationship between financial literacy and stock market participation among university students in Ghana. The study involved surveying 400 University of Ghana students to assess their level of financial literacy, stock market participation, and explore potential influencing factors. The study analysed data using ANOVA and multiple regression analysis. The findings of the study revealed that students exhibited limited knowledge in various financial literacy areas, including interest compounding, time value of money, inflation, money illusion, stocks, bonds, mutual funds, and investment risk diversification. Moreover, the study identified male, older, postgraduate students, and those with more working experience as comparatively more financially literate and active participants in stock market activities. Additionally, a positive relationship between financial literacy and stock market participation in Ghana was established. Other determinants of stock market participation included age, gender, course of study, and income levels. Based on these findings, it is recommended that the Ministry of Education implement significant initiatives to enhance financial literacy education among tertiary students. Furthermore, financial institutions should increase advertising efforts to promote awareness about various financial products.

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金融知识的决定因素及其对加纳大学生参与股市的影响

本研究探讨了加纳金融知识和股票市场参与的决定因素。研究还探讨了加纳大学生的金融知识和股市参与之间的关系。研究对 400 名加纳大学学生进行了调查，以评估他们的金融知识水平和股市参与度，并探索潜在的影响因素。研究采用方差分析和多元回归分析法对数据进行了分析。研究结果表明，学生在各个金融知识领域的知识有限，包括复利、货币的时间价值、通货膨胀、货币幻觉、股票、债券、共同基金和投资风险分散。此外，研究还发现，男生、年龄较大的学生、研究生和工作经验较丰富的学生的金融知识水平相对较高，并且积极参与股票市场活动。此外，研究还确定了金融知识与加纳股市参与度之间的正相关关系。股票市场参与度的其他决定因素包括年龄、性别、学习课程和收入水平。基于这些研究结果，建议教育部采取重大举措，加强对大学生的金融知识教育。此外，金融机构应加大广告宣传力度，提高人们对各种金融产品的认识。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Economics and Financial Issues

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期刊介绍： International Journal of Economics and Financial Issues (IJEFI) is the international academic journal, and is a double-blind, peer-reviewed academic journal publishing high quality conceptual and measure development articles in the areas of economics, finance and related disciplines. The journal has a worldwide audience. The journal''s goal is to stimulate the development of economics, finance and related disciplines theory worldwide by publishing interesting articles in a highly readable format. The journal is published Bimonthly (6 issues per year) and covers a wide variety of topics including (but not limited to): Macroeconomcis International Economics Econometrics Business Economics Growth and Development Regional Economics Tourism Economics International Trade Finance International Finance Macroeconomic Aspects of Finance General Financial Markets Financial Institutions Behavioral Finance Public Finance Asset Pricing Financial Management Options and Futures Taxation, Subsidies and Revenue Corporate Finance and Governance Money and Banking Markets and Institutions of Emerging Markets Public Economics and Public Policy Financial Economics Applied Financial Econometrics Financial Risk Analysis Risk Management Portfolio Management Financial Econometrics.