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.
