“Factors Affecting Investment Decision Among Large Scale Investment In Shegar City Gefersa Guje Sub city Administration”

Abstract

The study aimed was to explore factors affecting investment decisions among large investment in Shegar City Gefersa Guje Sub-City administration, Oromia, Ethiopia. The study utilized an explanatory research design, combining quantitative and qualitative data. Primary data was collected from employees and owners in Gefersa Guje City Administration, while secondary data was gathered from various sources. The target population included directors, managers, and finance officers from various industries in Shegar City Gefersa Guje Sub-City administration. The sample size was 60 investors, managers, finance directors, accountants, and finance officers from six large firms and a total of 360 respondents were involved in the study. Data analysis involved descriptive and inferential analysis, with multiple regression analysis to explore the influence of investment information, risk, profitability, and investors' financial knowledge on investment decisions. Shegar City's large-scale investment sector is predominantly male, well educated, and experienced in business and management. Most investors have completed secondary education, with 62.2%) having some experience. The most common positions are manager (31%) and owners (28%). The quality and availability of local government facilities in Shegar City, Gefersa Guje Sub-City Administration, can impact the business environment and operational costs. A well-developed facility attracts investors and encourages economic growth, while inadequate facilities can hinder it. Factors such as investment information, risk, profitability, financial knowledge, and local government facilities play a crucial role in investment decisions. The R² value of 0.60 explains approximately 60.5% of the variation in investment decisions. Investment information is the strongest positive coefficient, while risk is less influential. Financial knowledge is also a significant predictor. The availability of local government facilities can also positively influence investment decisions. The study recommends improving investment information, enhancing financial literacy, upgrading local government facilities, streamlining business registration and licensing processes, and promoting public private partnerships to enhance investor access, facilitate business registration and licensing, and foster joint investment projects and synergies.