Participation of Civil Servants in Dar es Salaam Stock Exchange, Tanzania

Abstract

Purpose: This study examined the behavioural factors that influence civil servants’ participation in stock exchange trading. The trading of stock can assist existing or new firms to obtain long-term and reliable financing resource easily and quickly. Thus, to improve the stock market and the economy as a whole, active participation of various players is important to increase the level of liquidity in the financial markets.
 Design/Methodology/Approach: A cross sectional survey of two hundred sixty-eight civil servants working in urban areas was conducted by using questionnaires with likert scale type of questions. The data was analyzed by using structural equation modeling (SEM) method.
 Findings: The results revealed that awareness and subjective norms are related to the respondents’ intention to participate in stock exchange trading positively. However, perceived costs, perceived risks and attitude had no significant effect on civil servants’ intentional behaviour.
 Implications/Originality/Value: The result implies that policy makers should plan strategies that can enhance the respondents’ awareness and involve people who can pressure the civil servants to participate in stock markets trading. Cross sectional data collected in this study may need to be examined again in future when certain variables have changed, like education background or improvement in the dissemination of stock market information.