Determinants of Money Market Investment Decisions
Author(s)
Ernest Ofori Asamoah , Franscisca Kafui Tamakloe ,
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Abstract
The need for a thorough analysis using a number of factors to determine what influences the investor; regardless of the diverse information available justifying the rationality or irrationality of the investor, as most studies done are capital market related. This study identifies the determinants of individual investment decisions in the money market, concentrating on the central region of Ghana. Primary data was used for the study. The data was subjected to multiple regression analysis, using SPSS software. The independent variables considered was social, economic and risk factors, the descriptive statistics for the entire variables were ascertained and correlation analysis done to establish the relationship between the factors. The study revealed that social factors influences individual investors decision making in the central region to invest in money market instrument than economic or risk factors. It also revealed that the number of individual investors are male dominated, and majority of them are between the ages of 31 years to 35 years. The result indicated that 68.52% of these investors invest in Treasury Bill (T’Bill) more than the other money market instruments. It is recommended that institutions take advantage of the social factors to channel needed investment information to aid the individual investor make the right choice.
Keywords
Investment, money market, central region, determinants and decisions
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