Demand for Treasury Bills in Ghana, Looking Beyond Risk

Abstract

Investment is a very important activity in the life of every income earner. It basically entails setting aside part of one’s income into an investment vehicle to yield returns in a form of reserving and or increasing the value of the initial amount invested. Treasury bills are one of the avenues for investing by income earners since it yields guaranteed returns over various time periods/durations. This study investigates whether there are behavioral factors influencing the demand for treasury bills in Ghana. A convenient sampling method was adopted in the collection of data from workers in Greater-Accra region. A logistic regression analysis was conducted to determine the behavioral factors that drive investment in treasury bills in Ghana. The study found that there are behavioral factors influencing the demand for treasury bills in Ghana. Education, sociability, number of years of work experience, occupation and saving motives were found to be the main behavioral factors that influence the demand for treasury bills in Ghana. However, financial literacy and age were found to be insignificant in influencing the demand for treasury bills. The study has implication for investment organizations that need to need to know the behavioral attributes of Ghanaian workers towards investing in order to strategize in selling their investment products.