What drives the investment intentions of emerging economy millennials? Examining the effect of financial advertisement with the PLS-SEM

Abstract

The financial service sector involves high-risk and uncertain elements that make financial decision-making challenging; thus, information sources act as facilitators. The present study analyzed the effects of financial advertisements on investors’ behavioral intentions with perceived risk acting as a mediator and gender and marital status as moderating variables. The study empirically validates the proposed conceptual model (based on Stimulus–Organism–Response) with the interrelationship between financial advertisement antecedents, perceived risk, and investors’ investment intentions. Data were collected from 481 respondents using the survey method and analyzed using the partial least squares structural equation modeling (PLS-SEM). “Multigroup analysis (MGA)” was conducted to identify the gender and marital status intergroup moderating effects. The study confirms the significant relationship between informativeness and truthfulness with the perceived risk. The result found that credibility and truthfulness are significantly related to investor intention. In addition, the mediating effect of the perceived risk was found to be absent. Gender is moderating the relationship between credibility and investment intentions; informativeness and perceived risk; truthfulness and perceived risk, whereas marital status moderates the relationship between credibility and investment intentions; involvement and perceived risk; and truthfulness and perceived risk. The present study helps to understand millennial investment decision-making when they are exposed to various financial promotions and advertisements. This study provides insights to the government in policy framing regarding the financial advertisements essentials and disclosures that need to be focused on.

Moderating role of millennials' financial literacy on the relationship between risk tolerance and risky investment behavior: evidence from India

“…Thus, H1 is accepted, signifying that a higher risk appetite leads to increased willingness to participate in the risky financial market. Results in line with this study were previously reported by Ishfaq et al (2020) and Dogra et al (2023). Shehata et al (2021) reported that higher awareness on risk enhances an investor's confidence while trading in the stock market.…”

“…Results in line with this study were previously reported by Ishfaq et al . (2020) and Dogra et al . (2023).…”

“…In contrast to previous generations, millennials now have access to a broader array of innovative financial products credits to the development of the financial industry (Hizgilov and Silber, 2020). However, this has increased the complexity of the financial marketplace, which is testing the limits of this generation's financial knowledge, as it is the key to the know-how and confidence needed to participate in the financial market (Costa et al ., 2021; Dogra et al ., 2023). Millennials must have adequate FL as they are in their wealth-creating and saving for the retirement life stage, and these decisions will have a long-lasting impact on their and the economy's financial health (Lusardi and Oggero, 2017).…”

“…Additionally, no prior research has used FL as a moderator on the impact of risk tolerance toward millennial RII. Although emerging economies like India are witnessing continuous improvement, very few studies have examined the complex investment choices made by Indian millennial investors (Dogra et al ., 2023), necessitating further research. This study aims to overcome the aforementioned gaps in the literature by exploring whether millennials intend to invest in risky assets, and whether their intention to do so can be differentiated based on their FL and risk tolerance.…”

IMPACT OF FINANCIAL LITERACY ON FINANCIAL SATISFACTION: MEDIATING ROLES OF INVESTMENT DECISIONS & MODERATING ROLE OF RISK ATTITUDE

“…Individuals with greater financial literacy tend to make better investment decisions, leading to increased financial satisfaction (Sobaih & Elshaer, 2023). Also, financial behavior of individuals also exerts an influence on their investment choices, which in turn have an impact on their level of financial satisfaction (Dogra, Kaushal & Kalia, 2023). Investment choices have been shown to have a mediating role in the relationship between financial literacy, financial behavior, and financial satisfaction, as demonstrated by the research in relevant academic fields.…”