Influence of financial literacy on retail investors' decisions in relation to return, risk and market analysis

Swati Prasad; Ravi Kiran; Rakesh Kumar Sharma

doi:10.1002/ijfe.1920

journal article Aug 05, 2020

Influence of financial literacy on retail investors' decisions in relation to return, risk and market analysis

Swati Prasad

Ravi Kiran

Rakesh Kumar Sharma

International Journal of Finance & Economics Vol. 26 No. 2 pp. 2548-2559 · Wiley

View at Publisher Save 10.1002/ijfe.1920

Abstract

AbstractInvestors differ in their decisions with respect to risk, returns and market analysis. The present study attempts to examine the influence of financial literacy on retail investors' decisions in relation to return, risk and market analysis. The study uses convenience sampling to collect data from the retail investors through stock brokerage managers. Factor analysis has been employed for understanding factors of financial literacy. Financial literacy is composed of Accounting Information; Market Information; Broad Overview; and Technical Knowledge. The factors of Investment decisions are: Return Analytics; Risk Analytics; and Market. The risk and return analytics have stronger impact on investors decision than market analytics. PLS SEM has been employed for examining relation between financial literacy and Investment decision. The results suggest a significant positive relation between financial literacy and investment decision.

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Details

Published: Aug 05, 2020
Vol/Issue: 26(2)
Pages: 2548-2559
License: View

Authors

S

Swati Prasad

School of Humanities and Social Sciences Thapar Institute of Engineering and Technology (Deemed University) Patiala India

R

Ravi Kiran

School of Humanities and Social Sciences Thapar Institute of Engineering and Technology (Deemed University) Patiala India

R

Rakesh Kumar Sharma

School of Humanities and Social Sciences Thapar Institute of Engineering and Technology (Deemed University) Patiala India

Cite This Article

Swati Prasad, Ravi Kiran, Rakesh Kumar Sharma (2020). Influence of financial literacy on retail investors' decisions in relation to return, risk and market analysis. International Journal of Finance & Economics, 26(2), 2548-2559. https://doi.org/10.1002/ijfe.1920

Influence of financial literacy on retail investors' decisions in relation to return, risk and market analysis

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