Financial Literacy, Risk Tolerance and Stock Market Participation

Asian Economic and Financial Review

Rajesh Mishra^1¹ 

[1]Faculty, ICFAI Business School, Gurgaon, Haryana, India^1

关键词: Financial literacy;    Risk tolerance;    Investment awareness;    Financial education;    Stock market participation.;   

DOI  :  10.18488/journal.aefr.2018.812.1457.1471

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This study explores how households? stock market investment decisions are influenced by self-assessed financial literacy, investment awareness, risk propensity and socio-economic characteristics. This study used national survey data of Indian households across the country, a survey conducted by SEBI (Securities and Exchange Board of India) to get a comprehensive view of households? characteristics, behaviour and investment patterns. The results of logistic regression indicate that individual having more risk tolerance, financial literacy, and investment awareness significantly influences the stock market investment decisions. ANOVA results indicate the significant difference among different groups of responding households according to age, education, zone, saving, debt, and income level while no significant difference found in level of stock market participation based on gender, occupation, and marital status. The results also validate the usefulness of financial education programme for enhancing the financial awareness among households that positively impacts the investment decision regarding stock market investments.

【 授权许可】

CC BY