The Effect of Financial Literacy on Investment Decision Making in Southern Lebanon

Alaaraj, Hassan; Bakri, Ahmed

doi:10.15294/ibarj.v4i1.118

Cited by 26 publications

(32 citation statements)

References 3 publications

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“…Much of the current economics research stresses that finance is beneficial to enhancing SMEs' performance [23]. Financial inclusion could be measured as access to financial services from one aspect, as the community must participate in the economic system to improve its welfare [24][25][26][27]. More commonly, FI is essential for promoting SME expansion [28] and substantial employment growth [29].…”

Section: Financial Inclusion Theories and Hypothesis Buildingmentioning

confidence: 99%

Do Digital Finance and the Technology Acceptance Model Strengthen Financial Inclusion and SME Performance?

Thathsarani

Jian-guo

2022

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Digital inclusive finance, as a vital engine for the country’s high-quality growth, provides new impetus and prospects for encouraging economic development during the looming economic downturn. SMEs play a significant role in economic growth and development, particularly in developing countries. However, value promoting financial inclusion for SMEs through digitalization is still understudied. The objectives aimed at by this investigation were: to study the impact of financial inclusion on SME performances, to observe the influence of digital financing on financial inclusion and SME performance association as a mediator and to examine how the Technology Acceptance Model (TAM) supports financial inclusion and SME performance. A well-structured questionnaire using a quantitative research approach was utilized to gather data from 366 owner-managers among Sri Lankan SMEs. The study’s findings are presented: financial inclusion, digital financing and TAM play influential roles in SME performance. More precisely, digital financing and TAM mediate positively the relationship between financial inclusion and performance in SMEs. The findings of this research endeavor to shed light on developing and popularizing digital financing by providing services which are cheap, secure and low risk from a supply-side perspective, as well as adopting and adjusting digital financing by enhancing financial literacy, which would be necessary from the demand-side perspective.

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Section: Financial Inclusion Theories and Hypothesis Buildingmentioning

confidence: 99%

Do Digital Finance and the Technology Acceptance Model Strengthen Financial Inclusion and SME Performance?

Thathsarani

Jian-guo

2022

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“…Previous studies such as Raut (2020) , Okello et al (2017) ; Alaaraj and Bakri (2020) , and Khan (2020) examined investor’s decision making with the mediation of financial literacy for non-Islamic financial products while sharia literacy may have the ability to better explain investor’s behavior. According to the best of the authors’ knowledge, little research has been conducted on sharia literacy for Islamic financial products.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Behavioral Biases on Herding Behavior of Investors in Islamic Financial Products

et al. 2021

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The study aimed to investigate the impact of behavioral biases on herding for Islamic financial products with the mediation of shariah literacy. An adopted questionnaire from several published studies was used to collect data. The data were collected from 410 respondents and were analyzed with SmartPLS. The results for the direct impact showed that self-attribution, illusion of control, and information availability have a positive and significant impact on herding for Islamic financial products while shariah literacy showed an insignificant impact on herding. The results for mediation showed that previously significant and positive impact turned to insignificant when shariah literacy was introduced as mediating variable between the illusion of control, self-attribution, information availability, and herding. From a theoretical perspective, this study would contribute to the existing body of knowledge of financial decision making from shariah literacy point-out. On the other hand, the findings of this study may be useful for investors to avoid herding in the Islamic financial markets. The authors synthesize the contribution made by behavioral finance studies in extending the knowledge of herding behavior in Islamic financial products with a mediating role of shariah literacy. The key limitation of the study includes data that were collected from three districts of Punjab, Pakistan.

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“…Individual investors’ lack of skills in acquiring and processing ESG information adds to the information processing costs. While there are differences, individual investors lack financial literacy ( Alaaraj and Bakri, 2020 ) and incur high costs from information awareness and acquisition ( Blankespoor et al, 2019 ).…”

Section: Discussion Of Esg Information Integration Using Risk Managem...mentioning

confidence: 99%

Integration of ESG Information Into Individual Investors’ Corporate Investment Decisions: Utilizing the UTAUT Framework

Park

2022

Front. Psychol.

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Environmental, Social, and Governance (ESG) criteria are now considered significant, global non-financial evaluating factors of corporate value. However, no attention is given to what influences the integration of ESG information by individual investors in their investment decisions. This study first identifies different types of information investors use to make investment decisions. Risks identified in information integration in investment decision making is reviewed. Next, the Unified Theory of Acceptance and Use of Technology (UTAUT) model is used to identify individual investors’ investment tendencies and the factors affecting integration of ESG information into investment decisions. Each of four categories for UTAUT innovation adoption factors (performance expectancy, effort expectancy, social influences, and facilitating conditions) are discussed in relation to how they affect individual investors’ integration of ESG information. Standardization of ESG reporting and evaluation frameworks would reduce efforts to adopt ESG information and could build a strong foundation for facilitating ESG information integration. Corporates’ efforts to further communicate their ESG management through their investor relations and active governmental well as non-governmental organizations’ participation are recommended.

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The Effect of Financial Literacy on Investment Decision Making in Southern Lebanon

Cited by 26 publications

References 3 publications

Do Digital Finance and the Technology Acceptance Model Strengthen Financial Inclusion and SME Performance?

Do Digital Finance and the Technology Acceptance Model Strengthen Financial Inclusion and SME Performance?

The Impact of Behavioral Biases on Herding Behavior of Investors in Islamic Financial Products

Integration of ESG Information Into Individual Investors’ Corporate Investment Decisions: Utilizing the UTAUT Framework

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