Page 1 of 13
Advances in Social Sciences Research Journal – Vol. 8, No. 11
Publication Date: November 25, 2021
DOI:10.14738/assrj.811.11249. Mamaclay, A. G., Rivera, K. M., & Castillo, M. P. (2021). Investment Pattern, Preferences and Financial Management Practices of
Wesleyan University-Philippines Employees. Advances in Social Sciences Research Journal, 8(11). 265-277.
Services for Science and Education – United Kingdom
Investment Pattern, Preferences and Financial Management
Practices of Wesleyan University-Philippines Employees
Ali G. Mamaclay
Research Associate,
Research Development and Productivity Office and
Faculty, Graduate School, College of Business and Accountancy
Hospitality and Tourism Management
Wesleyan University-Philippines
Kevin M. Rivera
Former Faculty, College of Business and Accountancy
Wesleyan University-Philippines
Manuel P. Castillo
Faculty, College of Business and Accountancy
Wesleyan University-Philippines
ABSTRACT
This study determined the investment pattern, preferences, and practices of
Wesleyan University-Philippines employees with the use of descriptive
correlational methods of research, and the data were collected using a researcher- made survey questionnaire. Respondents of the study were the 305 employees
chosen purposively. The result shows that most of the respondents belonged within
the age range of 19 – 28 years old, married, a college graduate with 1 – 6 years in
service, permanent, had a monthly income of 10000-21000 and had other sources
of income from their husband/wife income. Likewise, most of the respondents had
a saving for an emergency and unforeseen circumstances, had an investment, and
invested 1 – 5 percent of their income. Most of them had a savings account, intended
to invest the money to more than five years in which the principal amount is
secured, invested in the private sector, and expected to grow steadily. Similarly, this
study found out that the respondents sometimes practice the five indicators of
financial management practices used in the study. Moreover, profile variables were
significantly correlated with financial management practices. Age, number of years
in service, employment status, monthly income, and other sources of income were
significantly associated with money management practices. Similarly, a number of
years in service were correlated considerably with savings management practices.
Finally, age, employment status, and other sources of income were significantly
associated with investment management practices. Further, there is a significant
difference in the respondents' assessment in all indicators of financial management
practices.
Keywords: investment pattern, savings, employees, expenditures, and financial
management practices
Page 2 of 13
266
Advances in Social Sciences Research Journal (ASSRJ) Vol. 8, Issue 11, November-2021
Services for Science and Education – United Kingdom
INTRODUCTION
In the developed countries, the income is generated at a higher rate, which encourages people
to have more savings, which opine to more investment leading to more capital formation
(Thulasipriya, 2014).
Similarly, Ramanathan & Sundaram, (2015) stated that investments are the sacrifice made by
an individual for an uncertain reward in the future. Investment decisions are made by investors
with the help of fundamental analysis and judgment. Investment preferences differ from person
to person, depending on the circumstances in which he invests. The investment behavior of the
individual depends on these circumstances. The essential features of investment are safety,
income stability, appreciation, liquidity, and transferability.
The primary motivation for an individual to invest is to alter his consumption pattern to achieve
higher levels of consumption in the future. The essential quality of an investment is that it
involves waiting for a reward. The commitment of resources is saved or put away from current
consumption in the hope that some benefits will accrue in the future (Ganapathi, 2015).
Moreover, the significant features of investment are the safety of principal amount, liquidity,
income stability, appreciation, and easy transferability. A variety of investment avenues are
available such as stock market, bank, companies, gold and silver, real estate, life insurance,
postal savings, and so on. All the investors invest their surplus money in the above-mentioned
avenues based on their risk-taking attitude. Financial investment is the purchase of financial
security, such as a stock, bond, or mortgage (Shanthi & Murugesan, 2016).
Jayaprakash, Ajayan & Jayashankar (2017) stated that "any action that is performed today to
yield a profit at a later stage is described as an investment."
Meanwhile, financial management is a practice that concerns every individual who can earn
and consequently, take control of the earnings. Likewise, financial management is unique for
every individual. For some, it means taking control of money received from work and making
sure it is adequate to sustain the standard of living. For others, financial management is more
than meeting present needs but more importantly, securing what is needed in times of difficulty
and life after employment, thus, allotting a portion of earning for saving. (Aldovino, Pangilinan
& Bermudez, 2013).
This study was conducted to determine the investment pattern, preferences, and financial
management practices of faculty and staff of Wesleyan University-Philippines.
Objectives
1. To describe the demographic profile of the respondents.
2. To determine the investment pattern and preferences of the respondents
3. To identify the financial management practices of the respondents.
4. To determine the significant relationship between the demographic profile and financial
management practices of the respondents
5. To determine the significant difference in the financial management practices of the
respondents when grouped according to respondents.
Page 3 of 13
267
Mamaclay, A. G., Rivera, K. M., & Castillo, M. P. (2021). Investment Pattern, Preferences and Financial Management Practices of Wesleyan
University-Philippines Employees. Advances in Social Sciences Research Journal, 8(11). 265-277.
URL: http://dx.doi.org/10.14738/assrj.811.11249
Hypothesis
1. There is no significant relationship between the demographic profile and financial
management practices of the respondents
2. There is no significant difference in the financial management practices of the
respondents when grouped according to respondents.
METHODOLOGY
The researchers utilized the descriptive method of research in conducting the study.
Shuttleworth (2008), defines descriptive as a research design as a scientific method that
involves observing and describing the behavior of a subject without influencing it in any way.
Likewise, Leedy and Ormrod (2001) explained the descriptive research approach as a primary
research method that examines the situation, as it exists in its current state. Descriptive
research involves the identification of attributes of a particular phenomenon based on an
observational basis or the exploration of the correlation between two or more events.
Specifically, this study used the descriptive method called correlational research. Correlational
research is a type of non-experimental research in which the researcher measures two
variables and assesses the statistical relationship (i.e., the correlation) between them with little
or no effort to control extraneous variables (Price, Jhangiani and Chiang, 2016).
In this study, the relationship between the socio-demographic profile and financial
management practices of the respondents was tested.
Further, the respondents of this study were the faculty and staff of Wesleyan University- Philippines and were chosen via purposive sampling using the following inclusion criteria: (1)
employees currently employed and; (b) willing to participate in the study.
The researchers used the researcher-made questionnaire to solicit data from the respondents.
The data collected were statistically treated with the use of descriptive statistics like frequency,
percentage, and weighted mean. Furthermore, inferential statistics like Spearman rho and z- test were also utilized.
RESULTS AND DISCUSSIONS
Socio-Demographic Profile of the Respondents
The data gathered on the socio-demographic profile of the respondents includes age, civil
status, sex, highest educational attainment, number of years in service, employment status,
monthly income, and other sources of income.
About 91 or 29.84% belonged within the age bracket of 19-28 years old, followed by 71 or
23.28% 39-48 and 60 or 19.67% belonged within the age range of 29-38 years old. The result
indicates that employees of the institution were composed of young adults.
In terms of civil status, there were 187 or 61.31% married, while 117 or 38.36% were single
and 1 or 0.33% recorded that they were a widower. It indicates that most of the respondents
were married. As to the sex of the respondents, there were 165 or 54.10% female, while 14 or
45.19% were male. It shows that there were more female employees in the institution
compared to their male counterparts.