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Decoding financial literacy's mediating role: analyzing the influence of biopsychosocial indicators on financial satisfaction and risk tolerance among millennial investors

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  • Shakira MUKHTAR

    (Islamic University of Science and Technology, Awantipora, J&K, India)

  • Anisa JAN

    (Islamic University of Science and Technology, Awantipora, J&K, India)

Abstract

This study examine the intricate relationship among biopsychosocial indicators (Personality type A\B, Self-esteem and Sensation seeking), financial satisfaction and financial risk tolerance among millennial investors, emphasizing the mediating role of financial literacy. The study employed convenience sampling technique to gather the data from 596 millennial investors who invest in Indian stock market. Further structured equation modeling (SEM) was used to perform the statistical analysis of the gathered data. The results of this study highlight that biopsychosocial factors significantly impact the financial risk tolerance and financial satisfaction of millennial investors. Our study results also reveal that financial literacy partially mediate the relationship between biopsychosocial indicators and financial risk tolerance. However no significant mediating effect of financial literacy is found in the relationship between sensation seeking and financial risk tolerance. Lastly, our study results also revealed that financial literacy partially mediates the relationship between biopsychosocial indicators and financial satisfaction among millennial investors.

Suggested Citation

  • 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.
    • Handle: RePEc:agr:journl:v:4(637):y:2023:i:4(637):p:219-242
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