Impact of financial literacy on savings behavior: the moderation role of risk aversion and financial confidence

Ananda, S, Kumar, RP and Dalwai, T ORCID: https://orcid.org/0000-0001-5754-5384, 2024. Impact of financial literacy on savings behavior: the moderation role of risk aversion and financial confidence. Journal of Financial Services Marketing. ISSN 1363-0539

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Abstract

This research examines the impact of financial literacy on the savings behavior of investors residing in the Gulf Cooperation Council (GCC) region. It also investigates the moderating impact of financial confidence and risk aversion in the relationship between financial literacy and savings behavior. The primary data were collected from 357 respondents through a structured questionnaire using the snowball sampling method. The findings of this study suggest that financial literacy has a positive impact on investors' savings behavior. Further, the study also found that risk aversion significantly moderates the relationship between financial literacy and savings behavior. The three-way interaction between financial literacy, risk aversion, and financial confidence significantly affects the investors’ savings behavior. The study suggests that policymakers should emphasize training programs for investors on financial literacy, financial confidence, and risk aversion.

Item Type:	Journal article
Publication Title:	Journal of Financial Services Marketing
Creators:	Ananda, S., Kumar, R.P. and Dalwai, T.
Publisher:	Springer
Date:	28 January 2024
ISSN:	1363-0539
Identifiers:	Number Type 10.1057/s41264-023-00265-1 DOI 1865970 Other
Divisions:	Schools > Nottingham Business School
Record created by:	Jonathan Gallacher
Date Added:	22 Feb 2024 16:45
Last Modified:	22 Feb 2024 16:45
URI:	https://irep.ntu.ac.uk/id/eprint/50919

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