Browsing by Author "Joel Alfred Kibenge"

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    The influence of financial literacy on investment decisions in savings and credit associations: a case of selected savings associations in Mukono District
    (Uganda Christian University, 2026-06-05) Joel Alfred Kibenge
    Financial literacy remains a critical determinant of investment decisions particularly within cooperative financial institutions in developing economies. In Sub-Saharan Africa and more specifically within Uganda Savings and Credit Cooperative Organizations (SACCOs) continue to face challenges associated with limited financial literacy among members and management which constrains optimal investment outcomes. This study examines the influence of financial literacy conceptualized through financial knowledge, financial behavior and financial attitudes on investment decisions among selected SACCOs in Mukono District. The study adopted a mixed-methods approach using an explanatory sequential design combining quantitative and qualitative techniques. Quantitative data were collected through a cross-sectional survey of 169 SACCO managers while qualitative insights were obtained from ten key informant interviews involving SACCO leaders and regulatory stakeholders. Statistical analysis including correlation and multiple regression was complemented by thematic analysis to provide an integrated interpretation of findings. The results reveal that financial literacy significantly influences investment decisions, with financial behavior emerging as the most dominant predictor (β = 0.922, p < 0.001), followed by financial attitudes (β = 0.719, p < 0.001) and financial knowledge (β = 0.326, p < 0.001). Collectively these variables explain a substantial proportion of the variance in investment decisions. Qualitative findings further demonstrated that while financial knowledge enhances awareness and analytical capacity effective investment outcomes are largely driven by disciplined financial behaviors and moderated by prevailing attitudes toward risk. Notably limited understanding of complex financial instruments and the predominance of risk-averse attitudes were found to constrain diversification and innovation in investment choices. The study concludes that financial literacy operates as a multidimensional construct in which behavior serves as the primary mechanism translating knowledge into actionable investment decisions. It recommends a shift from traditional knowledge-based training toward behavior-oriented interventions including practical financial training, structured decision-making frameworks and context specific capacity building programs. These findings contribute to both theory and practice by providing empirical evidence on the relative influence of financial literacy components in cooperative financial settings and offering policy relevant insights for strengthening SACCO performance and financial sustainability. Keywords: Financial literacy, investment decisions, SACCOs, financial behavior, financial knowledge, financial attitudes, Uganda, mixed methods.