Analysis of Gender Differences in Investment Behavior Among Employees in Kenya’s Listed Companies

A Journal article by Dr. Timothy Okech, an associate Professor in the Chandaria School of Business at USIU-AfricaThe purpose of the study was to determine the existence of gender differences in investment behaviour among employees in Kenya’s listed companies. Three research questions guided the study namely: Are there gender differences in investing decisions? Does financial socialization contribute in gender financial behavior? Are there gender differences in financial literacy? Descriptive research design was adopted with target population as employees of listed companies identified using stratified sampling. The study used structured questionnaires that had both open ended and closed ended questions. Data collected was analyzed using SPSS to obtain both descriptive and inferential statistics. Cronbach’s alpha reliability coefficient of 0.85 was obtained implying the tools were reliable. The study revealed existence of gender differences in determining financial behavior with gender differences influencing financial behavior. Further, there was negative relationship between gender differences and investing decision, among employees. Financial socialization and financial literacy were found to significantly affect financial behavior among employees irrespective of the gender. On the basis of the findings, it was inferred that gender differences affect investment decision and that financial socialization and differences in financial literacy contribute in determining financial behavior across gender. It is recommended that policies initiatives and dialogue need to be mooted aimed at increasing women’s confidence in investment. Further, financial socializatio