Moderating Effect of Demographic Traits on the Influence of Investment Decisions on Financial Behaviour of Working Women

Ms. Ritika Maurya; Prof. V Shunmugasundaram

doi:https://doi.org/10.17492/jpi.mudra.v10i1.1012301

Submit Manuscript Login / Register Subscribe

Home Page

Editorial Board Members

Mission, Aims & Scope

Current Issue

Moderating Effect of Demographic Traits on the Influence of Investment Decisions on Financial Behaviour of Working Women

Ritika Maurya, V Shunmugasundaram

Vol 10 , Issue 1 , January - June 2023 | Pages: 1-22 | Research Paper

Article has been added to the cart.View Cart (0)

https://doi.org/10.17492/jpi.mudra.v10i1.1012301

Published Online: June 03, 2023

Author Details ( * ) denotes Corresponding author

1. * Ritika Maurya, Research Scholar, Faculty of Commerce, Banaras Hindu University, varanasi, Uttar Pradesh, India (ritikamaurya05@gmail.com)

2. V Shunmugasundaram, Professor, Faculty of Commerce, Banaras Hindu University, Varanasi, Uttar Pradesh, India (sundarambhu@gmail.com)

This research paper aims to determine the moderating effect of demographic characteristics on the relationship between financial behaviour and financial decision of working women. The researcher used a quantitative method for the research and collected 384 responses from respondents. To analyse the collected data the researcher used structural equation model (SEM) through smart PS4 version software which involves different methods to interpret the data and test the framed hypothesis which includes convergent validity discrimination validity and path analysis. The findings of this study show that there is a significant relationship between financial behaviour and financial decision but the findings contradict the outcomes of previous studies when it was observed that there is no significant impact of demographic characteristics on the relationship between financial behaviour and financial decision of working women belonging to Varanasi, India. The moderating effect of demographic characteristics was found to be insignificant for this research.

Keywords

Financial behaviour; Financial decision; Demographic characteristics; Working women; Moderating effect; PLS

Accenture. (2017). Leading in the New. Annual Report. https://investor.accenture. com/~/media/Files/A/Accenture-IR-V3/home/accenture-annual-report-2017.pdf
Agarwalla, S., Barua, S., Jacob, J., & Varma, J. (2015). Financial literacy among working young in urban India. World Development, 67(C), 101-109.
Agrawal, K. (1988). Earning woman in an Indian family. New Delhi: Discovery Publishing House.
Andarsari, P., & Ningtyas, M. (2019). The role of financial literacy on financial behavior. Journal of Accounting and Business Education, 4(1). Retrieved from http://dx.doi.org/10.26675/jabe.v4i1.8524.
Atkinson, A., & Messy, F. A. (2012). Measuring financial literacy results of the OECD / International Network on Financial Education (INFE) pilot study. OECD Working Papers on Finance, Insurance and Private Pensions, 15. Retrieved from https://doi.org/10.1787/5k9csfs90fr4-en.
Awais, M., Laber, M., Rasheed, N., & Khursheed, A. (2016). Impact of financial literacy and investment experience on risk tolerance and investment decisions: Empirical evidence from Pakistan. International Journal of Economics and Financial Issues, 6(1), 73-79.
Bangma, D., Fuermaier, A., Tucha, L., Tucha, O., & Koerts, J. (2017). The effects of normal aging on multiple aspects of financial decision-making. PLoS ONE, 12(8), 1-18.
Barber, B., & Odean, T. (2001). Boys will be boys: Gender, overconfidence, and common stock investment. The Quarterly Journal of Economics, 116(1), 261-292.
Baruah, M., & Parikh, A. (2019). Impact of risk tolerance and demographic factors on financial investment decision. International Journal of Financial Management, 8(1), 36-48.
Becker, G. (1994). Human capital: A theoretical and empirical analysis with special reference to education (first edition). Chicago. USA: University of Chicago Press.
Borden, L., Lee, S. A., Serido, J., & Collins, D. (2008). Changing college students’ financial knowledge, attitudes, and behavior through seminar participation. Journal of Family and Economic Issues, 29, 23-40.
Braunstein, S., & Welch, C. (2002). Financial literacy: An overview of practice, research, and policy. Board of Governors of the Federal Reserve System (U.S.), 88, 445-457.
Bucher-Koenen, T., Lusardi, A., Alessi, R., & Rooij, M. (2017). How financially literate are women? An overview and new insights. Journal of Consumer Affairs, 51(2), 255-283.
Bujang, M., Omar, E., & Akmal, N. (2018). A review on sample size determination for Cronbach’s alpha test: A simple guide for researchers. The Malaysian Journal of Medical Sciences (MJMS), 25(6), 85-99. Retrieved from doi:10.21315/mjms2018.25.6.9.
Chandra, A. and Kumar, R. (2012), “Factors influencing Indian individual investor behavior”,Decision, Vol. 39, pp. 141-167
Chekimaa, B., Chekima, S., Khalid Wafa, S., Igau, O., & Sondoh Jr., S. (2016). Sustainable consumption: The effects of knowledge, cultural values, environmental advertising, and demographics. International Journal of Sustainable Development & World Ecology, 23(2), 210-220. Retrieved from https://doi.org/10.1080/13504509. 2015.1114043.
Chen, H., & Volpe, R. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(2), 107-128. Retrieved from doi: 10.1016/S1057-0810(99)80006-7
Chin, A. (2012). Psychological biases and investor behaviour: Survey evidence from Malaysian stock Market. International Journal of Social Science, Economics and Arts, 2(2), 67-73.
Cooper, A., Gascon, F., & Woo, C. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 9(5), 371-395.
Falk, R., & Miller, N. (1992). A primer for soft modelling (illustrated ed.). University of Akron Press: Akron, OH.
Fong, J., Koh, B., Mitchell, O., & Rohwedder, S. (2021). Financial literacy and financial decision-making at older ages. Pacific-Basin Finance Journal, 65, 1-17.
Fornell, C., & Larcker, D. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. Retrieved from https://doi.org/10.2307/3151312.
Garcia, M. (2013). Financial education and behavioral finance: New insights into the role of information in financial decisions. Journal of Economic Surveys, 27(2), 297-315.
Geetha, N., & Ramesh, M. (2012). A study on relevance of demographic factors in investment decisions. Perspectives of Innovations, Economics & Business, 10(1), 14-27.
Hair, J., Anderson, R., Black, B., & Bab, B. (2016). Multivariate data analysis (7th ed.). Upper Saddle River (N.J.): Pearson Education.
Hair, J., Black, W., & Babin, B. (2010). Multivariate data analysis: A global perspective (7th ed.). Upper Saddle River (N.J.): Pearson Education.
Hamidon, T., & Kehelwalatenna, S. (2020). The influence of behavioural finance factors and the moderating effects of contextual and demographic factors on individual investor’s investment performance. Accounting and Finance Research, 9(3), 101-116.
Hanna, S., & Lindamood, S. (2016). Household investments: Still a man’s world? Retrieved from https://www.researchgate.net/publication/294876089_Household_Invest ments_Still_a_Man’s_World.
Hira, T., & Loibl, C. (2007). A typology of investors: Identification of teachable moments and key investment topics. InvestorsReport. NASD Investor Education Foundation.
Indrawan, H. (2014). Demographic variables of working women in surabaya in the selection of types of family investment. Finesta, 2(1), 71-75.
Jain, D., & Mandot, N. (2012). Impact of demographic factors on investment decision of investors in Rajasthan. International Refereed Research Journal, 3(2(3)), 81-92.
Jain, R. (2014). An analysis of income and investment pattern of working women in the city of Ahmedabad. IRACST- International Journal of Research in Management & Technology, 4(6), 139-146.
Johnson, E., & Sherraden, M. (2007). From financial literacy to financial capability among youth. Journal of Sociology and Social Welfare, 34(3), 119-145.
Jones, J. (2005). College students’ knowledge and use of credit. Financial Counselling and Planning, 16(2), 9-16.
Kasman, M., Heuberger, B., & Hammond, R. (2018). Recommendations for improving youth financial literacy education. Retrieved from https://www.brookings.edu/wp-content/uploads/2018/10/ES_20181001_Financial-Literacy-Recommendations.pdf.
Katper, N., Azam, M., Karim, N., & Zia, S. (2019). Behavioral biases and investors’ decision-making: The moderating role of socio-demographic variables. International Journal of Financial Engineering (IJFE), 6(3), 1-15.
Lusardi, A. (2019). Financial literacy and the need for financial education: Evidence and implications. Swiss Journal of Economics and Statistics. Retrieved from https://doi.org/10.1186/s41937-019-0027-5.
Lusardi, A., & Mitchell, O. (2007). Baby Boomer retirement security: The roles of planning, financial literacy and housing wealth. Journal of Monetary Economics, 54(1), 205-224.
Lusardi, A., & Scheresberg, C. (n.d.). Financial capability and financial literacy among working women: New insights. Retrieved from http://gflec.org/wp-content/uploads/2017/03/Research-Report_Working-Women_March-2017.pdf?x87657.
Mary S. R., & Josaph, T. (n.d.). Investment pattern and behaviour of working women on financial investment avenues a study with special reference to Chennai city. Retrieved from http://hdl.handle.net/10603/181573.
Mathivannan, S., & Selvakumar, M. (2011). Saving and investment pattern of school teaches: A study with reference to Sivakasi Taluk, Tamil Nadu. Indian Journal of Finance, 5(4), 12-26.
Metawa, N., Hassan, M., Metawa, S., & Safa, M. (2019). Impact of behavioral factors on investors’ financial decisions: Case of the Egyptian stock market. International Journal of Islamic and Middle Eastern Finance and Management, 12(1), 30-55. Retrieved from doi:10.1108/IMEFM-12-2017-0333.
Mikels, J.A., Reed, A.E., & Simon, K.I. (2009). Older adults place lower value on choice relative to young adults. Journal of Gerontology: Psychological Sciences, 64B(4), 443–446. Retrieved from doi:10.1093/geronb/gbp021.
Miller, M., Reichelstein, J., Salas, C., & Zia, B. (2015). Can you help someone become financially capable? A meta-analysis of the literature. World Bank Research Observer, 30(2), 220-46.
Mittal, M., & Vyas, R. K. (2008). Personality type and investment choice: An empirical study. The ICFAI University Journal of Behavioral Finance, 5(3), 7-22.
Oehler, A., Horn, M., & Wedlich, F. (2018). Young adults’ subjective and objective risk attitude in financial decision-making Evidence from the lab and the field. Review of Behavioral Finance, 10(3), 274-294.
Padiyath, S. (2013). Less than 1/4th of working women make own investment decisions:
Study. Retrieved from https://www.business-standard.com/article/pf/less-than-1-4th-of-working-women-make-own-investment-decisions-study-113071700584_1.html.
Reza, M., Manurung, D., Kolmakov, V., & Alshebami, A. (2020). Impact of education and training on performance of women entrepreneurs in Indonesia: Moderating effect of personal characteristics. Management Science Letters, 10, 3923-3930. Retrieved from doi:10.5267/j.msl.2020.7.018.
Ringle, C., & Wende, S. (2022). SmartPLS, 4. Retrieved from https://www.smart pls.com/.
Robb, C., & Woodyard, A. (2011). Financial knowledge and best practice behavior. Journal of Financial Counseling and Planning, 22(1), 60-70.
Roy, B., & Jain, R. (2018). A study on level of financial literacy among Indian women. IOSR Journal of Business and Management, 20(5), 19-24.
Salim, A., Sulphy, M. M., & Thilagar, P. (2017). A study on the relationship between long-term orientation, self-efficacy and certain behavioral aspects of women micro-entrepreneurs. Journal of Advanced Research in Dynamical and Control Systems, 9(12), 767-784.
Scheresberg, C. (2013). Financial literacy and financial behavior among young adults: Evidence and implications. Numeracy, 6(2), 1-21.
Sellappan, R., Jamuna, S., & Kavitha, T. (2013). Investment attitude of women towards different sources of securities-A factor analysis approach. Global Journal of Management and Business Research Finance, 13(3), 27-30.
Serafini, K., Malin-Mayor, B., & Nich, C. (2016). Psychometric properties of the Positive and Negative Affect Schedule (PANAS) in a heterogeneous sample of substance users. The American Journal of Drug and Alcohol Abuse, 42(2), 203-12. Retrieved from doi:10.3109/00952990.2015.1133632.
Shah, P., & Jha, N. (2018, May 16). Study of determinants of financial literacy and its impact on financial investment behavior of married women in Mumbai city. Shodhganga. Retrieved from http://hdl.handle.net/10603/213071.
Shefrin, H. (2002). Beyond greed and fear: Understanding behavioral finance and the psychology of investing. Oxford: Oxford University Press.
Shieh, C.-J., Liao, Y., & Hu, R. (2013). Web-based instruction, learning effectiveness and learning behavior: The impact of relatedness. Eurasia Journal of Mathematics, Science & Technology Education, 9(4), 405-410.
Sudindra, V. R., & Naidu, J. G. (2018). Financial behaviour and decision-making. International Journal of Creative Research Thoughts, 6(1), 1428-1435.
Vasan, M. (2020). Moderating effect of demographic and business characteristics on performance of women owned small enterprises: Empirical evidence from India. Serbian Journal of Management, 15(2), 319-333.
Yuh, Y., & Hanna, S. (1997). The demand for risky assets in retirement portfolios. Proceedings of the Academy of Financial Services, 1-10. Retrieved from https://www.researchgate.net/publication/280013242_The_Demand_for_Risky_Assets_in_Retirement_Portfolios.