Effect of Trust on Stock Market Participation Among Civil Servants in Borno State, Nigeria

Abstract

This research paper examines the relationship between trust and stock market participation among civil servants in Borno State, Nigeria. The study investigates how trust levels influence civil servants’ decisions to engage in the stock market. Utilizing survey data, the research explores the role of trust in financial institutions, government policies, and social networks in shaping individuals’ perceptions and behaviours regarding stock market participation. Findings report a significant positive relationship between trust and stock market participation, while distrust may hinder their willingness to invest. Based on the findings, therefore, the paper recommends that strategies aimed at building trust in financial institutions, improving transparency in government policies, and fostering supportive social networks could enhance civil servants’ willingness to engage in the stock market, among other things.