IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v8y2020i1p1730079.html
   My bibliography  Save this article

Linking biopsychosocial indicators with financial risk tolerance and satisfaction through macroeconomic literacy: A structural equation modeling approach

Author

Listed:
  • Muhammad Hasnain Abbas Naqvi
  • Yushi Jiang
  • Miao Miao
  • Mishal Hasnain Naqvi
  • David McMillan

Abstract

The purpose of the current research was to analyze the impact of biopsychosocial indicators on the financial risk tolerance (FRT) and financial satisfaction along with the mediating role of macroeconomic literacy in these associations. For this purpose, three indicators names as “personality type, self-esteem, and sensation seeking” were used to check the impact of biopsychosocial indicators on FRT and financial satisfaction. The current study was conducted in China where the data was collected from retail investors through structured questionnaire. The purposive sampling technique was used to decide the sample from the population. The data were collected from 1134 retail investors and SPSS and AMOS were used to analyze the data by applying SEM. Findings of the current study revealed that the personality, self-esteem and sensation seeking have significant influences on FRT. It has been further found that the personality type and self-esteem have significant influences on the financial satisfaction. Results further confirmed the mediating role of macroeconomic literacy between self-esteem and FRT, personality type and FRT, self-esteem and financial satisfaction, and personality type and financial satisfaction. However, no significant mediating role of macroeconomic literacy was found between sensation seeking and FRT, and sensation seeking and financial satisfaction. The current study and findings will be of great importance for theory and practice regarding financial/investment decision making and FRT.

Suggested Citation

  • Muhammad Hasnain Abbas Naqvi & Yushi Jiang & Miao Miao & Mishal Hasnain Naqvi & David McMillan, 2020. "Linking biopsychosocial indicators with financial risk tolerance and satisfaction through macroeconomic literacy: A structural equation modeling approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1730079-173, January.
    • Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1730079
    DOI: 10.1080/23322039.2020.1730079
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2020.1730079
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23322039.2020.1730079?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nkosivile Welcome Madinga & Eugine Tafadzwa Maziriri & Tinashe Chuchu & Zinzi Magoda, 2022. "An Investigation of the Impact of Financial Literacy and Financial Socialization on Financial Satisfaction: Mediating Role of Financial Risk Attitude," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(1), pages 60-75, January.
    2. Shakira MUKHTAR & Anisa JAN, 2023. "Decoding financial literacy's mediating role: analyzing the influence of biopsychosocial indicators on financial satisfaction and risk tolerance among millennial investors," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(637), W), pages 219-242, Winter.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1730079. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.