Investigating the Relationship between Past Behaviors and Financial Literacy with the Intention to Invest in the Stock Market with the Mediating Role of Individual Variables

Document Type : Research Paper

Authors

1 Assistant Professor of Government Management and Tourism, Payame Noor University, Iran.

2 Associate Professor of Industrial and Technology Management, College of Farabi, University of Tehran, Qom, Iran.

3 M.A. of Government Management, Payame Noor University, Iran.

4 M.A of Industrial Management, College of Farabi, University of Tehran, Qom, Iran.

10.22103/jdc.2022.18622.1180

Abstract

Objective: The purpose of this study was to investigate the relationship between past behaviors and financial literacy with the intention to invest in the stock market with the mediating role of individual variables. The main question in this research is: What is the relationship between past behaviors and financial literacy with the intention to invest in the stock market with the mediating role of individual variables of stock exchange investors in Isfahan?
 Methods: The present study is an applied research. This research is descriptive-causal and because the data is done through sampling of the population to investigate the distribution of characteristics of the statistical population, this research is from the field of survey (field finding). The statistical population in this study included investors of the stock exchange in the city of Isfahan. The statistical sample obtained by Cochran's formula is equal to 384 people. To ensure 450 randomly available questionnaires, 392 questionnaires were completed and analyzes were performed based on the same number of samples. In this study, data were collected by field method using a questionnaire. Also, to ensure the validity, the questionnaire was provided to experts such as professors and academic researchers, as well as managers and senior experts, whose opinions also confirmed the validity of the questionnaire. With the initial distribution of 30 questionnaires, the reliability coefficient for the questionnaire, which contains 26 questions.
 Results: According to the data analysis, the results showed that attitudes, mental norms, perceived behavioral control and past behavior have a positive and significant effect on the intention to invest in the stock market. Also, past behavior, financial literacy has a positive and significant effect on attitude and also financial literacy has a positive and significant effect on perceived behavioral control. Past behavior and financial literacy have a positive and significant effect on the intention to invest in the stock market through attitude and also financial literacy has a positive and significant effect on the intention to invest in the stock market through perceived behavioral control.
 Conclusion: The research results confirm all hypotheses except the fourth hypothesis. Suggestions based on the results of the research are presented as follows: Regarding the first hypothesis, it is suggested to change the attitude of investors to a positive attitude by holding workshops on stock exchange, because it is necessary to have a positive attitude and sufficient motivation to work in the stock market. To welcome stock market investment ideas; Regarding the second hypothesis, it is suggested that if customers have sufficient knowledge about the stock market, my colleagues and friends should inform and train them to invest in the stock market, because those who are successful in the stock market have an incentive to Who are important in their lives to advise to invest in the stock market and to engage in activities and investments; Regarding the third hypothesis, it is suggested that we provide sufficient training to investors to be able to operate in the market in a timely manner to buy any stock at the appropriate time; And easily recognize profitable stocks and buy good stocks; Regarding the fourth and fifth hypotheses, it is suggested that brokers hold financial literacy classes during times of market downturn during times of market downturn so that investors do not make an emotional and hasty decision to sell their shares. On the other hand, investors gain experience from market performance, and this experience can influence their future investment decisions. Also, stocks whose past performance has always been extraordinary are considered important in the investor's investment decision; Regarding the sixth and seventh hypotheses, it is suggested that investors do not invest and make decisions with predictions, speculations and sometimes past market behavior, because the right decision in the market requires the analysis of the stock market and the correct forecast of prices and dividends. Is. And if they invest in stocks, they should invest in the long run because it will grow naturally. And stocks fluctuate over time; In the case of the eighth hypothesis, it is recommended that investors do not use past information to make investment decisions; Because the market is constantly moving according to the political and economic conditions of society and it cannot be correctly predicted that it will act as in the past and the market that lost in the past may be profitable in the current market; Regarding the ninth and tenth hypotheses, it is suggested that with the financial literacy that brokers create for investors, they should encourage investors to invest in the stock market; Because if the investment has a positive performance in the stock market; It will encourage your friends and relatives to invest.

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Main Subjects

References

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Journal of Development and Capital
Volume 7, Issue 2 - Serial Number 13
December 2022
Pages 173-189

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History

  • Receive Date: 04 December 2021
  • Revise Date: 27 May 2022
  • Accept Date: 14 June 2022

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