FINANCIAL LITERACY, INVESTMENT EXPERIENCE, AND SELF-EFFICACY AS DETERMINANTS OF INVESTMENT DECISION MAKING BEHAVIOR

Abstract

Purpose – The purpose of the study is to identify the impact of FL, IE, and FSE on IDMB; mediating role of RT and PI and FRP as moderators.

Methodology & Design – The quantitative research design was used to achieve the objective of the study. The survey technique was and questionnaire. The cross-sectional data was gathered from the respondents. The population of the study is business graduates of Karachi, Pakistan. The total number of observations was used for data analysis. The PLS-SEM software was applied for analysis purposes. The questionnaire was also modified with slight adjustments from the already existing validated instruments to suit the context of this research.

Findings – The research found that FL, IE and FSE has a impact on IDMB with RT as mediating variable and what is the role of the moderator that is PI and FRP. The study shows how these variables impact each other in the presence of mediating and moderating variable.

Limitations – The research was limited by geographical scope, cross-sectional designs and reliance on self-reported data. Certain limitations were imposed intentionally to make it vast and timely. The future researcher could make it broader according to their reach and willingness of expansion in the study.

Recommendations – The institutions should focus on strengthening FL, FSE and providing IE to students so it can positively impact their IDMB. The reliance on basic three independent variables were studied in the research which influences investment decision making behavior to the greatest extent. The additional focus on is advised along with the further study of mediating and moderating variables.