The Moderating Role of Perceived Risks in the Relationship between Financial Knowledge and the Intention to Invest in the Saudi Arabian Stock Market

Shehata, Saleh M.; Abdeljawad, Alaa Mohamed; Mazouz, Loqman Abdelkader; Aldossary, Lamia Yousif Khalaf; Alsaeed, Maryam Yousif; Sayed, Mohamed Noureldin

doi:10.3390/ijfs9010009

Cited by 35 publications

(22 citation statements)

References 30 publications

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“…Trang and Tho’s ( 2017 ) found that perceived risk positively affects their investment decisions bringing satisfaction. Shehata et al ( 2021 ) supported that perceived risk calculation boosts the investor’s confidence while stock exchange trading, thus increasing investor intention. Maziriri et al ( 2019 ) found that all the elements of perceived risk affect the investor's intention while trading on online platforms.…”

Section: Discussionmentioning

confidence: 99%

What drives the investment intentions of emerging economy millennials? Examining the effect of financial advertisement with the PLS-SEM

2023

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The financial service sector involves high-risk and uncertain elements that make financial decision-making challenging; thus, information sources act as facilitators. The present study analyzed the effects of financial advertisements on investors’ behavioral intentions with perceived risk acting as a mediator and gender and marital status as moderating variables. The study empirically validates the proposed conceptual model (based on Stimulus–Organism–Response) with the interrelationship between financial advertisement antecedents, perceived risk, and investors’ investment intentions. Data were collected from 481 respondents using the survey method and analyzed using the partial least squares structural equation modeling (PLS-SEM). “Multigroup analysis (MGA)” was conducted to identify the gender and marital status intergroup moderating effects. The study confirms the significant relationship between informativeness and truthfulness with the perceived risk. The result found that credibility and truthfulness are significantly related to investor intention. In addition, the mediating effect of the perceived risk was found to be absent. Gender is moderating the relationship between credibility and investment intentions; informativeness and perceived risk; truthfulness and perceived risk, whereas marital status moderates the relationship between credibility and investment intentions; involvement and perceived risk; and truthfulness and perceived risk. The present study helps to understand millennial investment decision-making when they are exposed to various financial promotions and advertisements. This study provides insights to the government in policy framing regarding the financial advertisements essentials and disclosures that need to be focused on.

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Section: Discussionmentioning

confidence: 99%

What drives the investment intentions of emerging economy millennials? Examining the effect of financial advertisement with the PLS-SEM

2023

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“…Thus, investment awareness with investment rules, regulations, policies and knowledge influences intention to invest [44]. Shehata et al [45] concluded in a recent study that an investor's intent to invest in the Saudi Arabian Stock Exchange positively correlates with his or her awareness of investing risks. Despite this, Octarina et al [46] argued that investment awareness has no significant impact on the student's intention to invest; Ammer and Aldhyani, [9] confirmed that investment awareness positively influences students' intentions toward investment.…”

Section: Investment Awareness and Financial Risky Investment Intentionsmentioning

confidence: 99%

Antecedents of Risky Financial Investment Intention among Higher Education Students: A Mediating Moderating Model Using Structural Equation Modeling

Elshaer

Sobaih

2023

Mathematics

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The current study examines the direct effect of investment awareness and university education support on students’ risky financial investment intentions. Additionally, it examines the mediating effect of social influence and the moderating effect of self-control on these relationships. For this purpose, we directed an online questionnaire to senior students at three public universities in Saudi Arabia. The results of SmartPLS showed positive significant effects of investment awareness and university education support on social influence towards investment. The results also showed direct positive significant effects of investment awareness and university education support on students’ risky financial investment intentions. The results confirmed a partial mediating effect of social influence on the link between investment awareness and university education support on students’ risky financial investment intentions. Moreover, self-control was found to have a moderating effect on the link between investment awareness, university education support and social influence. Self-control failed to confirm the other moderating effects; i.e., the link between university education support and investment awareness, nor the link between investment awareness, university education support and risky financial investment intention. Implications of these findings for academics and policymakers to stimulate investment intention among higher education graduates in the Kingdom of Saudi Arabia (KSA) are discussed.

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“…The primary relationship means that financial market decisions reflect trends in oil prices. For instance, the listing of Saudi Aramco, the primarily state-owned oil exploration company by Saudi Arabia, on the Saudi Arabian Stock Market was a strategic move to invite external investors (Shehata et al, 2021). The invitation of external investors was motivated by a need for the government to stabilize Saudi Arabia's financial markets further.…”

Section: Literature Reviewmentioning

confidence: 99%

Do oil prices and oil production capacity influence decision making and uncertainty in the financial market? Evidence from Saudi Arabia

Alsmadi

Alrawashdeh

Al-Gasaymeh

et al. 2022

Investment Management and Financial Innovations

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The aim of this study is to investigate the relationship between oil prices and oil production capacity and financial market performance in the Kingdom of Saudi Arabia and how oil prices and oil production capacity influence the decision making and uncertainty factors in Saudi Arabia’s financial markets. The key variables considered are oil prices and oil production capacity in the Kingdom of Saudi Arabia. Other variables such as foreign direct investment decisions and domestic investment decisions are adopted to explore their impact and reaction to the various risks identified. Therefore, data was collected from online sources to analyze qualitative and quantitative information to understand risks, uncertainties and decision-making considerations. The findings of this paper indicate that rising oil prices increase the value of the Saudi Arabian financial market. The study showed that the diversification of the investor portfolio increases the stability of Saudi Arabia’s financial market. Also, the KSA’s financial market volatility primarily reflects oil price fluctuations, and the Saudi Arabian oil production capacity directly affects its financial market performance. Saudi Arabia’s oil production was also found to pose insignificant risk to long-term economic growth and stability, thereby putting investors’ long-term investments at risk. The study also showed that investors in Saudi Arabia’s financial market fail to objectively analyze risks by focusing on short-term high-profit margins from oil prices. AcknowledgmentAll authors have contributed equally to this paper.

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The Moderating Role of Perceived Risks in the Relationship between Financial Knowledge and the Intention to Invest in the Saudi Arabian Stock Market

Cited by 35 publications

References 30 publications

What drives the investment intentions of emerging economy millennials? Examining the effect of financial advertisement with the PLS-SEM

What drives the investment intentions of emerging economy millennials? Examining the effect of financial advertisement with the PLS-SEM

Antecedents of Risky Financial Investment Intention among Higher Education Students: A Mediating Moderating Model Using Structural Equation Modeling

Do oil prices and oil production capacity influence decision making and uncertainty in the financial market? Evidence from Saudi Arabia

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