Financial Literacy and Attitudinal study of the Newly Employed Youth towards Financial Planning

Pareek, Nishtha; Dixit, Neerja

doi:10.21013/jmss.v4.n2.p5

Cited by 1 publication

(1 citation statement)

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“…Such financial opportunity motivates individual investors to take part in stock market investments. Therefore, application of financial knowledge and performance in financial market is mostly relied on financial opportunity (Pareek & Dixit, 2016). The following hypotheses has been proposed in this way.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Financial Literacy and Behavioural Biases on Investment Decision-making

Suresh

2021

FIIB Business Review

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Investors’ financial literacy entails making sound investment decisions and the behavioural biases or irrational behaviour in decision-making that are collectively formed by heuristic bias, framing effect, cognitive illusions and herd mentality factors. The present study examines the combined impact of financial literacy and behavioural biases on investment decisions. A questionnaire was developed using Likert scaling technique to elicit study variables and collected data was analysed using SEM technique. The results showed that heuristic bias had a significant positive association with the creation of behavioural bias in decision-making. However, the framing effect, cognitive illusions and herd mentality have negative associations in the formation of behavioural biases. Further, investors often practice and follow heuristic biases rather than other irrational techniques for making investment decisions. Therefore, the financial literacy of individual investors has a significant impact on affecting stock market investment decisions.

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Section: Literature Reviewmentioning

confidence: 99%