ABSTRACT
Investors' trading activities are influenced by their financial attitudes. Even though existing research has recognized and investigated their relationship, behavioral assessments and financial attitude still poses questions. Furthermore, there is a lack of evidence about the trading activity of retail investors in the instance of a health crisis, like COVID-19 pandemic. The aim of study is to fill in the gaps in the existing literature by studying the relative impact of five dimensions of financial attitude on trading activity of retail investors' during the pandemic. We have used five dimensions to measure financial attitude such as financial anxiety, optimism of investors, financial security, self-control, and the need for precautionary savings. We collected 512 responses from retail investors with the help of a structured questionnaire. We analyzed financial attitude and trading activity using SEM to establish the structural relationship. The observed findings disclosed that self-control is the dominant variable followed by financial security, need for precautionary savings, financial anxiety, and optimism. © 2022, School of Management Sciences. All rights reserved.
ABSTRACT
Advancements in financial system and technology, enlarged individual responsibility for financial decisions, and rapid information expansion, have fundamentally transformed women's need to be functionally literate and financially capable, especially after the COVID-19 pandemic. The personality also has long term implications on financial well-being. The aim of the paper is to study the dominating role of financial attitude, financial awareness & skills, and financial behaviour on financial competence and the moderating role of personality on financial knowledge, financial behaviour, financial attitude, and financial capability. Multi stage stratified random sampling has been used to collect data from 530 urban working women in both the Public and Private sectors, self-employed professionals, and entrepreneurs. Smart-PLS is used by applying Structure Equation Modelling (SEM) to study the moderating role of personality on financial attitude, behaviour, knowledge, and capability. Further the Chi-square test and Tukey test and Kruskal Wallis Test are used to test the hypothesis. The study found that Financial Knowledge of working women with gold personalities influences their financial capability (Beta, 0.578) the most, While, Financial Behaviour is the primary influencer having green (Beta, 0.396) & blue (Beta, 0.638) personalities. Working women having Green Personality are found to be superior with respect to Financial Behaviour, Financial Capability and Financial Knowledge. It is also observed that working women having blue personality characteristics, have comparatively better financial attitude. © 2022 WITPress. All rights reserved.
ABSTRACT
Purpose: The purpose of this present study is to determine the importance of financial literacy in managing finance at the time of financial emergencies. The financial literacy level of Higher Education Students is studied on the components of financial knowledge, attitude and behaviour in the Pre COVID-19 scenario and highlights the importance of financial literacy in Post COVID-19 scenario. The paper also makes an attempt to study the difference in financial literacy component: financial knowledge, attitude and behaviour by demographic factors and the interdependencies in financial literacy component: financial knowledge, attitude and behaviour. Methodology: The present study considers primary source of data. A total sample of 447 Higher Education Students from different governmental and private institutions of Lucknow Region was chosen to determine the financial literacy level. Weigthed Airthmetic Mean, Independent Samples 't' test, Analysis of Variance (ANOVA) and Correlation statistical tool were used for the study. Findings: The findings of the study reveal that majority of the students were found to be low financial literate and lack financial preparedness for future to tackle financial emergency situations. There is interrelationship found between the financial literacy components: financial knowledge, attitude and behaviour. The finding of the study is significant as it helps to explain how the financial literacy components: financial knowledge, attitude and behaviour influence the financial literacy level among the Higher Education students in Lucknow Region and play a beneficial role in managing finance in the times of financial emergency. Practical Implications: The results clearly show that there is a need of serious policy measures to be taken in the field of financial education especially to tackle the obstacles in the time of financial emergency situation which is prevalent at present in the form COVID-19 as well as financial preparedness in future. © 2023 Contributors and Manakin Press. All rights reserved.
ABSTRACT
Purpose The COVID-19 pandemic has exposed the financial-economic vulnerability of the public and threatened the household financial stability, especially of the low-income group population, in developing economies such as India. The assessment of household financial vulnerability has gained considerable attention these days, especially in poor and developing countries. This article seeks to assess the level of household financial vulnerability in India, based on a household survey conducted across India. Design/methodology/approach This paper has proposed a financial vulnerability index (FVI) based on three self-reported parameters: (1) making end meet, (2) perception of income shock and (3) perception of expenditure shock. Subsequently, the impact of various behavioural and socioeconomic factors on the proposed financial vulnerability index has been assessed using fractional probit regression. Findings The research findings indicate that higher financial knowledge, better money management skills and lower impulsivity in financial behaviour can reduce financial vulnerability. It is suggested that suitable financial literacy programmes be implemented for vulnerable sections of society to enhance their financial knowledge, improve money management skills and manage impulsivity, thereby helping them make informed financial decisions leading to their financial well-being. Originality/value To the best of the authors' knowledge, none of the past studies have developed and assessed the financial vulnerability index in India. This study provides relevant recommendations for various financial sector regulators and government institutions in India.
ABSTRACT
With the emergence of COVID-19, the end of 2019 witnessed worldwide crises causing immense harm to human life. The virus that emerged from China at the end of the year 2019 soon spread to almost all the world economies with negative effects getting amplified each passing day. To combat the rapid spread of the virus and meet the rising medical needs the various governments imposed complete to restricted lockdown. Though the lockdown to an extent helped control the spread of the deadly virus, it also affected the economies severely. The unstable financial system, lack of earnings and limited savings brought a noticeable change in the financial attitude of the retail investors and hence, the emergence of COVID-19 opened up new areas of academic research in the field of financial management behaviour. Considering the novelty of the subject, this paper seeks to examine the impact of financial attitude and financial management behaviour of retail investors during the pandemic. To meet the objectives, the data were collected from a sample of 325 Delhi-NCR based retail investors. Structural Equation Modeling has been used to study the relationship amongst the identified variables. The findings enrich our understanding of retail investment behaviour. © 2021. Transnational Press London. All Rights Reserved.