The Moderation of Financial Literacy on the Relationship Between Individual Factors and Risky Investment Intention

Abstract

In this paper, the authors aim to manifest the effects of individual factors such as risk averseness in general, locus of control on risky investment intention. At the same time, this study intends to examine whether financial literacy moderates the relationship between risk averseness in general, locus of control and risky investment intention. The data set comprised of 112 participants through survey method. We fulfilled hierarchical regression in order to examine the hypothesized relationships. Accordingly, results showed that risk averseness in general had a significant and negative impact on risky investment behavior. Yet, this study provided no evidence of locus of control as a factor in predicting risky investment intention. Last but not least, it was found that financial literacy moderated these relationships. In other words, financial literacy changed the relationship between risk averseness in general, locus of control and risky investment intention.

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