Improving Financial Capability and Well Being : The Effect of Financial Attitude and Knowledge, Mediated by Financial Behavior, And Inclusion, Complemented by Demographics
Objective: The objective of this research is to examine the determinants of financial Capability and well-being in the context of investors of the Karachi stock exchange. For this, we modified the Çera et. al. (2020) framework to include the outcome of financial well-being as well as to add a complementary effect of demographics the determining the impact of financial behavior (FB) on financial capability (FE). We argue that Financial Attitude (FA), and knowledge (FK), affect financial behavior and inclusion (FI), this will, in turn, increase financial capability (FC), higher FE would improve financial well-being (FWB). We also contend that the effect of FB on capability is greater for individuals with more aged, high income, and higher education levels. Methodology: Empirical validity was established by conducting a survey using a close-ended questionnaire. The target population of this research has been identified as the investors of Karachi, Pakistan. The sample size of this research has been identified as 329 sample responses that are analyzed using PLS-SEM through SmartPLS 3.2.9.Findings: The results have shown that FA, and FK, seem to have a significant positive effect on financial behavior. FB improves the Financial capability that exerts a positive effect on FWB. FK and FI also have a direct positive effect on FC. Hence, FA, and FK lead to FWB through FB and then through FC as first and second order mediators. FC also positively mediates FI and FWB nexus. Moreover, the effect of FB on FC is lower for higher education and income level investors, whereas, for higher age investors, better FB would have a more pronounced effect on Financial capabilities
Year of publication: |
[2023]
|
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Authors: | Ali, Muhammad ; Siddiqui, Danish Ahmed |
Publisher: |
[S.l.] : SSRN |
Saved in:
freely available
Extent: | 1 Online-Ressource (27 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 14, 2021 erstellt |
Other identifiers: | 10.2139/ssrn.3942290 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014362270
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