The Impact of Financial Socialization, Cognitive Ability and Self-efficacy on Financial Literacy of Investors in Pakistan
Abstract
The purpose of our study is to investigate the impact of financial socialization, cognitive ability and self-efficacy on financial literacy of investors in Pakistan. Data was collected from 429 individual investors and were analyzed with structural equation modeling on Smart PLS software. This study has used convenience sampling technique for the collection of data. The participation of male investors as compare to female investors is high in Pakistan stock market. The main results of our study exhibit that self-efficacy and cognitive ability positively influences financial literacy of investors, while financial socialization has no impact on financial literacy. Policy makers can use this study to make some policies to reduce gender gap of investor in stock market of Pakistan
Authors
Muhammad Junaid Khan
PhD Scholar, Department of Management Sciences, COMSATS University Islamabad, Pakistan
Dr. Faheem Aslam
Assistant Professor, Department of Management Sciences, COMSATS University Islamabad, Pakistan
Syed Nisar Ul Mulk
PhD Scholar, Department of Management Sciences, University of Sawabi, KP, Pakistan