scholarly journals Assessing the Effect of Financial Literacy on Investors Decisions Making

2019 ◽  
Vol 8 (10) ◽  
pp. 3120-3124
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Demographic Factors ◽  
Indian Economy ◽  
Economic Profile ◽  
Literacy Level ◽  
The Impact

Indian economy has made its growth at an accelerating pace over the last decade. The study aims to assess literacy level of investors. The association between demographic, socio-economic profile of investors and their financial literacy level has been studied. The study also finds that whether literacy of investors have any effect on decision making of investors. To see the impact of demographic factors on financial literacy level, regression is performed. The result of the study states that decision of investors is significantly affected by literacy and knowledge of investors regarding financial terms.

scholarly journals Pengaruh Faktor Demografi dan Literasi keuangan dengan Behavior Finance dalam Pengambilan Keputusan Investasi

2021 ◽  
Vol 11 (2) ◽  
pp. 237-248
Author(s):  
Elkunny Dovir Siratan ◽  
Temy Setiawan
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Financial Literacy ◽  
Structural Equation ◽  
Investment Decision ◽  
Demographic Factors ◽  
Individual Investors ◽  
Portfolio Performance ◽  
Investment Decision Making ◽  
The Impact

The investment decision-making process is influenced by various factors, including financial literacy and demographic factors. This research examines the impact of demographic factors and financial literacy with behavioral finance as a mediation on investment decision making.  This research using structural equation model (SEM) analysis. The result shows that demographic factors through gender, age, education, income, occupation and experience have an influence and cause a specific behavior in investment decision making. Then the financial literacy factor has an influence in reducing negative behavior. Likewise, demographic factors and financial literacy with behavioral finance as a mediation on investment decisions have a positive influence. The existence of behavior that is manages with planning, financial literacy support, and demographic factors owned by individual investors will create an opportunity for market momentum. Which help maximize profit, better investment and portfolio performance, avoid risks, better investment decision, and forming trading strategies.

scholarly journals Impact of Behavioral Biases on Investment Decision Making with Moderating Role of Financial Literacy

2018 ◽  
Vol 6 (2) ◽  
pp. 34-41
Author(s):  
Rizwan Khalid ◽  
◽  
Muhammad Javed ◽  
Khurram Shahzad ◽  
◽  
...  
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Positive Impact ◽  
Investment Decision ◽  
Structure Questionnaire ◽  
Investment Decision Making ◽  
Overconfidence Bias ◽  
The Impact ◽  
Moderating Role

The objective of this study is to examine the Impact of Overconfidence bias and Herding bias on Investment Decision Making with Moderating Role of Financial Literacy. The population was Investor, Employee and Graduate Student. A sample of 200 was selected using convenience technique. Data were collected through structure questionnaire adopted from different papers. Correlation and Regression analysis were performed to examine the result. The Results show that overconfidence bias and herding bias have a positive impact on investment decision making and Financial Literacy has positive impact on investment decision making. Based on the results and discussions of the study findings as well as the limitations, theoretical and practical implications of the study have been provided.

"In Peers We Trust": The Substance of Customer-to-Customer Interactions to Customer Decision-Making Process

2020 ◽  
Vol 11 (1) ◽  
pp. 101-101
Author(s):  
Kartina Sury ◽  
Mts Arief ◽  
Nur Fadjrih Asyik
Keyword(s):  
Decision Making ◽  
Life Insurance ◽  
Financial Literacy ◽  
Online Survey ◽  
Marketing Communications ◽  
Customer Engagement ◽  
Decision Making Process ◽  
Customer Acquisition ◽  
Life Insurers ◽  
The Impact

The current marketplace is defined as the Age of Customer, an age that marks the shifting power from marketers to customers. Customers are enabled by technology and have the ability to access real time information while extending their network of friends and communities. The purpose of this research is to explore the impact of customer-to-customer interactions to customer decision-making process in life insurance in the context the online-offline marketing communications effort of marketers. Customer engagement is adopted to discuss the engagement of life insurers to customers and the drivers to the interaction of customers. This research focuses on customer decision-making process concerning customer acquisition path in the context of Indonesia's life insurance business. The questionnaire were distributed to respondents through online survey platform, targeting those non-individual life insurance policyholders as potential prospective users. Results concluded customers gathered a range of information on life insurance and conducted interactions with other peers, however offline marketing communications continued to be dominant aligned with the poor financial literacy and inclusion rate. Customer decision-making process was also determined by the results of customer-to-customer interactions and brand options as well selections were part of this journey. This research offers a proposed direction of cohesive online-offline marketing communications effort to facilitate the engagement and interactions of life insurers and customers given the empowered customer-to-customer interactions. Keywords: Customer Acquisition, Customer Decision-Making, Customer-to-Customer Interactions, Life Insurance, Digital insurance

scholarly journals The Impact of Health and Financial Literacy on Decision Making in Community-Based Older Adults

Gerontology ◽  
2012 ◽  
Vol 58 (6) ◽  
pp. 531-539 ◽  
Author(s):  
Bryan D. James ◽  
Patricia A. Boyle ◽  
Jarred S. Bennett ◽  
David A. Bennett
Keyword(s):  
Older Adults ◽  
Decision Making ◽  
Financial Literacy ◽  
Community Based ◽  
The Impact

scholarly journals A Study on the Impact of Financial Literacy on the Financial Behaviour of College Students

2021 ◽  
Vol 9 (4) ◽  
Keyword(s):  
College Students ◽  
Decision Making ◽  
Significant Influence ◽  
Significant Relationship ◽  
Financial Literacy ◽  
Modern Society ◽  
Financial Products ◽  
Financial Behaviour ◽  
The Impact ◽  
Gender Type

Financial literacy is increasingly vital as it has become essential that individuals acquire the skills to be able to survive in modern society and cope with the increasing diversity and complexity of financial products and services available. Financial literacy is the ability to take effective and sound decisions regarding the use and management of money. In the current era, no one can deny the importance of proper decision-making in the finance sector. If someone is not having enough financial literacy, how can he or she plan for a secure future! Especially when we talk about financial literacy among the students it is always a big matter because ultimately, they are the future of the country. The main objective of the study is to analyse the impact of financial literacy on the financial behaviour of college students. And also, the study examines the level of financial literacy among college students in India by evaluating the influence of various demographic factors like gender, type of courses, and income. The demographic, as well as financial behaviour and financial literacy, are the variables used in this study. Regression proved that there is a statistically significant influence of financial literacy on the financial behaviour of the students. And also, the demographics of student a has a significant relationship with financial literacy.

Evaluating the effects of sociodemographic characteristics and financial education on saving behavior

2020 ◽  
Vol 40 (11/12) ◽  
pp. 1423-1438 ◽  
Author(s):  
Mouna Amari ◽  
Bassem Salhi ◽  
Anis Jarboui
Keyword(s):  
Risk Aversion ◽  
Financial Literacy ◽  
Financial Education ◽  
Well Being ◽  
Mediating Effect ◽  
Content Type ◽  
Saving Behavior ◽  
Literacy Level ◽  
Education Training ◽  
The Impact

PurposeThe objective of this study is to explore the effects of financial literacy level and risk aversion on the saving behavior. The literature review showed dialectical results. Therefore, this study attempts to clarify the debatable of these results by studying the mediating effect of risk aversion on the relationships between demographics determinants and saving behavior moderated by the effect of the financial literacy level.Design/methodology/approachThe data were collected from the University of Normandy; the study sample included 516 respondents representing different segments of French households. The structural equation analysis was utilized to control the impact of financial literacy as a moderate variable and the risk aversion as a mediator variable among the link between sociodemographic factors and saving behavior.FindingsThe results demonstrated that there were significant effects of demographics factors on risk aversion. Moreover, financial literacy moderates the relationships between risk aversion and saving behavior.Research limitations/implicationsThe major limitation of this research is the small size of the study sample. This paper is restricted to French households. Future financial education training should cover the European context.Practical implicationsThis study provides further evidence that financial literacy should be considered an important factor for improving household well-being. The paper encourages governments and financial institutions to create a national financial education program.Originality/valueThis paper is the first attempt to employ a sample of low-income households after financial education training in the French context.

Is financial education an effective means to improve financial literacy? Evidence from rural China

2019 ◽  
Vol 80 (3) ◽  
pp. 305-320
Author(s):  
Huanhuan ZHang ◽  
Xueping Xiong
Keyword(s):  
Financial Literacy ◽  
Financial Education ◽  
Education Level ◽  
Evaluation Index System ◽  
Risk Level ◽  
Rural Residents ◽  
Content Type ◽  
Self Selection ◽  
Literacy Level ◽  
The Impact

Purpose Using survey data from Shandong, Henan and Guizhou provinces of China, the purpose of this paper is to accurately measure the impact of rural residents’ financial education on financial literacy. Design/methodology/approach This paper chooses one province from the Eastern, Central and Western Regions of China, namely, Shandong, Henan and Guizhou, respectively, and 1,565 samples are obtained through a questionnaire survey. First, the paper constructs a financial literacy assessment framework and, then, scores the financial literacy of the respondents. Second, using ordinary least squares, feasible generalized least squares method and forward search method, the paper estimates the impact factors of financial literacy level. To avoid sample selection errors and endogeneity problems, the authors divide the respondents into treatment group (participated in financial education) and control group (non-participating in financial education) and, then, adopt propensity score matching (PSM) to analyze the impact of rural residents’ financial education on financial literacy. Findings The results show that education level and risk level have significant impact on rural residents’ participation in financial education, and some unobservable abilities and qualities also affect their participation. Therefore, the process of rural residents’ participation in financial education exists, which gives rise to self-selection and endogeneity problems; financial education is promoting rural residents’ financial literacy, but the effect of promotion becomes smaller after taking into account sample self-selection and endogenous problems. Rural residents of female, higher age, single, higher education level, higher parental education level, agricultural type, higher family annual per capita income and lower risk level show stronger effects on their financial literacy level, if they participate in financial education. Research limitations/implications The survey sample was drawn from three provinces randomly but the site selection was not random. The implication is in rural China, financial education has positive effect on residents’ financial literacy level but considering the sample self- selection and endogenous nature, its impact becomes smaller. Practical implications The government should encourage rural residents to participate fully in financial education activities, especially those with a low educational level, low risk preference and mainly engaged in agricultural production. Originality/value The effect of financial education on financial literacy has not reached a consistent conclusion, and there is fewer quantitative discussion about this issue. The originality of this paper is based on the Organization for Economic Co-operation and Development evaluation index system; this paper constructs the evaluation index system of rural residents’ financial literacy in China and uses the PSM method to accurately measure the effect of financial education on financial literacy.

Financial literacy among youth

2018 ◽  
Vol 45 (1) ◽  
pp. 173-186 ◽  
Author(s):  
Neha Garg ◽  
Shveta Singh
Keyword(s):  
Marital Status ◽  
Financial Literacy ◽  
Empirical Studies ◽  
Demographic Factors ◽  
Well Being ◽  
Financial Knowledge ◽  
Content Type ◽  
The World ◽  
Literacy Level ◽  
Financial Behaviour

Purpose The purpose of this paper is to analyse the level of financial literacy among youth in the world based on previous studies. The study, particularly, focus at how socio-economic and demographic factors such as age, gender, marital status and income influence financial literacy level of youth and whether there is any interrelationship between financial knowledge, financial attitude and financial behaviour. Strong endeavour of the world economies to improve the financial well-being of their citizens has contributed to the rising importance of financial literacy as it equips the individuals to take quality financial decisions to enhance their financial well-being. Design/methodology/approach This literature review consists of seven key sections. The first section of this paper reviews the conceptual definitions of youth. Second part summarises the literature on financial literacy. Third, fourth and fifth section summarises the literature on the components of financial literacy, i.e. financial knowledge, financial attitude and financial behaviour, respectively. Sixth section reviews the empirical studies on the influence of socio-economic and demographic factors on financial literacy level. Seventh section summarises the literature on interrelationship between financial knowledge, financial attitude and financial behaviour. Findings The study reveals that the financial literacy level among youth is low across the most part of the world that has become a cause of concern. Also, it has been observed that various socio-economic and demographic factors such as age, gender, income, marital status and educational attainment influence the financial literacy level of youth and there exists an interrelationship between financial knowledge, financial attitude and financial behaviour. Originality/value Youth have to live a longer life ahead, thus, the decisions taken by them are going to affect them for a longer period of time, making it imperative for them to develop an understanding of the world of finance so as to avoid wrong choice of financial products. Thus, financial literacy is of significant relevance. This paper aims to understand the influence of various factors influencing the financial literacy as understanding the factors that contribute to or detract from the acquisition of financial literacy among youth can help in making policy interventions targeted at youth to enhance their financial well-being.

scholarly journals The Effect of Financial Literacy Level and Demographic Factors on Investment Decision

2020 ◽  
Vol 35 (1) ◽  
pp. 100
Author(s):  
Deavicris Ari Senda ◽  
Caecilia Wahyu Estining Rahayu ◽  
Christina Heti Tri Rahmawati
Keyword(s):  
Community Health ◽  
Health Center ◽  
Financial Literacy ◽  
Investment Decision ◽  
Community Health Center ◽  
Demographic Factors ◽  
Sampling Technique ◽  
Government Employees ◽  
Literacy Level ◽  
The Government

<p>The aim of this research is to find out the effect of financial literacy level and demographic factors on investment decision on government employees in Kalibawang Community Health Center, Kulon Progo, Yogyakarta. The population of this research is the government employees in Kalibawang Community Health Center, 29 of them are treated as the sample of this research. The sampling technique used in this research is purposive sampling. The respondents are those who  have  been  doing  investment. The data used in this research are collected with questionnaires. The data analysis technique used in this research is the Chi Square test. The result shows that financial literacy does not affect investment decision. However, out of the demographic factors, only age, income and investment experience affect  investment decision. Meanwhile, the others demograpic factors such as gender and education do not affect investment decision.</p>

scholarly journals The Impact of Influencing Factors on The Hoteliers Opting For Hotels in Tamil Nadu

2020 ◽  
Vol 8 (1) ◽  
pp. 80-84
Author(s):  
S Kanagarani
Keyword(s):  
Decision Making ◽  
Economic Development ◽  
Influencing Factors ◽  
Tamil Nadu ◽  
Service Sector ◽  
Vital Role ◽  
Indian Economy ◽  
The Impact

In the service sector of the Indian economy, Tourism is the most important industry. It is one of the world’s fastest-growing industries, and it plays a vital role in accelerating the economic development of the country, which is widely recognized. For every four jobs created directly, 18 jobs per room are created indirectly. That the Knowledge Oriented Services’ was significantly influenced by the level of decision making by hoteliers.

Sign in / Sign up

Export Citation Format

Share Document