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Volume 8, Issue 2

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Volume 8, Issue 2

THE IMPACT OF FINANCIAL LITERACY ON INVESTOR ATTITUDES AND DECISION-MAKING: AN EMPIRICAL ANALYSIS

Author(s)

Ishaan Singh, Kanishka Gupta

Affiliations

Symbiosis Centre for Management Studies, NOIDA

Abstract

This paper examines the relationship between financial literacy, investor’s attitude and decision making. For the same purpose data was collected from 510 respondents through a structured questionnaire. The scales adopted from earlier research were verified using exploratory factor analysis (EFA), followed by two-step structural equation modelling (SEM) that comprised confirmatory factor analysis (CFA) followed by hypothesis testing in AMOS 22.0. The study concluded that there was a significant relationship between financial literacy and decision making, investor’s attitude and decision making and investor’s attitude and financial literacy. The finding of the results will help regulatory authorities to assist investors in avoiding financial losses by providing them adequate financial information.

Keywords

India, Financial literacy, Decision Making, Investors Attitude, Financial Knowledge.

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