FINANCIAL LITERACY AND INVESTMENT DECISIONS AMONG MIDDLE AND LONG-DISTANCE ELITE ATHLETES IN KENYA
Abstract
This study examined the impact of financial literacy on the investment decision-making process among middle- and long-distance elite athletes in Kenya. The research design employed in this study was descriptive in nature. A total of 1,695 athletes specializing in middle- and long-distance events, and based in Kenya, were included in the study. From this population, a sample size of 318 athletes was selected. The researcher took into account of both stratified and purposive sampling methodologies in order to identify the specific participants. Data collection was conducted using structured questionnaires. The study included correlation analysis and a multivariate regression model to assess the hypotheses. The research results were presented through the utilization of graphical representations and tabular formats. The findings revealed that the participants exhibited a lack of knowledge of the functioning of the Nairobi Securities Exchange (NSE). Moreover, it was observed that athletes engaged in moderate buying and selling activities of ordinary shares, preference shares, and bonds for various firms inside the NSE. The findings of the study revealed that a significant proportion of the participants expressed a tendency to infrequently allocate a portion of their profits following each successful race for the purpose of saving. The findings of the survey revealed that a significant proportion of the participants expressed a modest level of awareness regarding various investment prospects both domestically and internationally. The findings of the study suggest that the allocation of investments in real estate, business, and financial assets in the region was only partially and inadequately executed. The findings of the research indicated that the level of literacy among the participants was significantly low. The team had a limited understanding of fundamental concepts in financial literacy, including the overall inflationary trend in the economy, the concept of time worth of money, and the potential misperception of cash holdings. It is imperative that athletes obtain the necessary knowledge that will serve as the fundamental basis for an effective investment strategy. By acquiring such knowledge, athletes will enhance their ability to develop a robust investment plan that is resilient to inflation. Hence, it is imperative for athletes to actively pursue financial counsel, as there exists a multitude of advisors who can offer them the necessary assistance, direction, and expertise required to construct a robust investment strategy that ensures long-term viability, while safeguarding against potential financial setbacks stemming from the prevailing economic climate.
Key Words: Financial Knowledge, Saving Habits, Investment Opportunities Awareness, Decision-Making
CITATION: Nyang’au, F. M., &Njoka, C. (2024). Financial literacy and investment decisions among middle and long-distance elite athletes in Kenya. The Strategic Journal of Business & Change Management, 11 (1), 407 – 425. http://dx.doi.org/10.61426/sjbcm.v11i1.2860
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i1.2860
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