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1.1    Background of the Study

According to (Dunmade, 2012) Investment can be defined as assets held by an individual or a corporate body for the purpose of generating further wealth. It involves the sacrifice of a certain present value for an uncertain future return. The expense is made today to create further wealth tomorrow by the means of profit, dividend, rents, interest, royalty capital appreciation and so on.

The major feature is that the expense is certain, but return is uncertain, this brings the concept of risk to investment. It is important to emphasize the fact that there is no investment without any element of risk attached to it. (Dunmade, 2012)

Investment decision making has not only to be continuous but rational too. Investment decisions are affected by the investors personal situation, that is, his age, marital status, number of children etc., the investors attitude towards risk, the investors financial situation, that is, his level and security of income, his financial commitment, existing investments and his tax position and the investors attitude to risk. (CIB 1994)

There are two types of investments. Real assets investment and financial assets investment. Real assets investment are tangible assets such as building, land, knowledge, machines and equipment that are used to produce goods and services or used to generate income. They are not as liquid as financial assets making it difficult to get a buyer immediately. Financial assets are contracts written on paper representing an indirect claim on real assets, they allocate income amongst investors and are more liquid that real assets. (Dunmade, 2012)


(Investopedia, 2018) defines standard of living as the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class or certain geographic area. Standard of living includes factors such as income, gross domestic product (GDP), national economic growth, economic and political stability, environmental quality, climate and safety.

People invest to earn more money than what they receive as their disposal income which will improve their standard of living. They discover that they can earn a higher return if they invest a certain percentage of their funds.

In Nigeria, people do not invest due to their literacy level, they have no knowledge of investment. People who have a knowledge of investment do not invest due to their level of income, which is hardly enough to meet personal or family needs. Those that do invest channel a small amount of their income because they must channel a larger amount to other things such as family upkeep or taking care of relatives who are dependent on them.


1.2    Statement of the Problem

Achar (2012) opined that the quality of lecturers standard of living have not been actualized as a result of low investment which has continued to affect lecturers welfare negatively. Large expensive or fancy items are viewed as evidence of high standard of living. Mahartshtra and Bhavsar (2013) asserted that the problem of low investment among lecturers’ results from low savings. Jeyakumari and Soundaravalli (2015) viewed the problem of investment among lecturers as the need for the consumption of certain goods like expensive home, cars, jewellery though which enhanced standard of living now but influenced investment negatively.

Discussing on the issue of investment patterns among college lecturers, Nallakannu and Selvaraj (2018) stated that inability of lecturers to strike a balance between current consumption and future consumption have been a major problem to investment realization. Reminiscing on the challenges of investment among lecturers in Nigeria, Jaja (2013) stated that low the inability of lecturers to sacrifice current consumption as a result of the need to improved standard of livings lead to fall in investment which may affect future living standard negatively. According to Adedeji and Bamidele (2003) the ability of lecturers to spend money for entertainment, health, education, variety in life, art, music and travel contribute to the standard of life but will influence investment negatively.

Furthermore, the effect of investment on standard of livings have been a subject of debates among scholars. Goymda and Josephine (2005); Rajesh, Rekh and Priyanka (2011) found negative relationship between investment and standard of livings of lecturers while Thulasipriya, (2015); Yasodha and Ravindran, (2017) established negative relationship between investment and standard of livings of lecturers.           

Agenais this background, this study seeks to examine factors that determine investment decision of lecturers and the effect of investment on the standard of livings of lecturers.

1.3.    Statement of Hypothesis

The following hypothesis will be tested

H0: There is significant relationship between the investment pattern and standard of living of lecturers

H1: There is no significant relationship between the investment pattern and standard of living of lecturers

1.4. Objectives of the Study

The main objective of this research work is to study the investment patterns of the lecturers of Babcock University and how it affects their standard of leaving.

Other objectives include:

  • To know if lecturers imbibe any investment culture and how it has affected their standard of living
  • To determine the portion of the income invested
  • To analyse the expected rate of return of school teachers for their investment
  • To identify the factors that influence lecturer’s choice towards investment
  • To identify the types of investments favoured by lecturers


1.5    Significance of the Study

This research work is significant as it will create an awareness among

lecturers about the need of investment to improve one’s standard of living.

It is significant as it also serves as an awareness among lecturers about the need of investment to have stable financial security to fall upon after retirement.


1.6    Scope and Limitation of the Study

This study is limited to the academic staff of Babcock University, Ilishan-Remo, Ogun State, Nigeria.


1.7    Definition of Key Terms

Investment: Acquisition of assets to create wealth.

Pattern: a regular and intelligible form in which something is done

Investment pattern: A regular and intelligible form of investing money into something for gaining profit on return.

Standard of living: the degree to which people have access to goods and services that makes their lives easier, healthier, safer and more enjoyable.

University: a high-level institution in which students’ study to obtain knowledge about a field of study.

University lecturer: a scholar in a high-level institution who disseminates knowledge to students.

Income: money received for work or through investments

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