An Empirical Analysis of the Relationship Between Enrolment in Finance Specialization and Employability: Effects of Graduates Skills

Abstract

The purpose of the study was an empirical analysis of the relationship between students’ enrolment in finance specialization and employability with effects of graduates’ skills. Bachelor of commerce program takes a period of three to four academic years. The program has various specializations from which students are allowed to select their favorite areas at the start or end of the second academic year. One such area is finance specialization. Empirical research has shown that finance specialization is popular to most students. It was expected that students who graduated with finance specialization had been taken through the course contents by experienced and knowledgeable Instructors. They were also expected to have undergone both internal and external attachments that heightened their practical skills which would attract employers. However, empirical research shows that this has not been the case since most finance graduates in Kenya are not being absorbed into the job market. This phenomenon called for an empirical analysis between students’ enrolment in finance specialization and employability with the effects of graduates’ skills. The study adopted an ex-post facto research design with a linear regression model. The population of the study comprised of Kenyan universities management, Finance students and graduates and selected organizations. The data collection instrument was a questionnaire which had been distributed among the respondents. A pilot study was conducted which proved the reliability and validity of the research instrument. Findings revealed a significant relationship between enrolment in finance specialization and graduates’ employability; a significant intervening effect of graduates’ skills on the relationship between enrolment in finance specialization and employability. The study recommended the need to restructure the course content of finance to be more hands-on. Universities to limit the number of students specializing in finance based on high entry points to avoid over enrolment in finance specialization which comes with its limitations including massive unemployment; the government of Kenya to create more jobs to the youths and graduates if they are to realize Kenya vision 2030.

Keywords: Enrolment in Finance Specialization, Employability, Graduate Skills

DOI: 10.7176/RJFA/11-12-13

Publication date:June 30th 2020