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Mindset to Money: How Gender Impacts the Relationship between Self-Efficacy and Financial Satisfaction

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  • Shakira Mukhtar
  • Anisa Jan
  • Hadiya Altaf
  • Danish Mehraj

Abstract

This study analyzes the relationship between financial self-efficacy and financial satisfaction of individual investors, with a particular emphasis on examining whether this relationship is moderated by gender. The study adopted a quantitative research approach and employed an online survey to gather data from a sample of 216 individual investors. Structural equation modeling (SEM) is employed to examine the direct effect of financial self-efficacy on financial satisfaction and the moderating effect of gender on this relationship. The results show that financial self-efficacy has a positive and significant impact on financial satisfaction. Furthermore, the findings indicate that gender moderates this relationship, with male investors exhibiting a stronger relationship between financial self-efficacy and financial satisfaction than female investors. These findings suggest that financial self-efficacy is an important predictor of financial satisfaction for both men and women and gender differences should be taken into account when examining the relationship between these variables. The study highlights the importance of financial self-efficacy in achieving financial satisfaction and emphasizes the need for interventions that improve financial self-efficacy, particularly for women investors who may experience greater barriers to financial success.

Suggested Citation

  • Shakira Mukhtar & Anisa Jan & Hadiya Altaf & Danish Mehraj, 2023. "Mindset to Money: How Gender Impacts the Relationship between Self-Efficacy and Financial Satisfaction," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 15(2), pages 137-148, December.
    • Handle: RePEc:rfb:journl:v:15:y:2023:i:2:p:137-148
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    References listed on IDEAS

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    1. Mustabsar Awais & M. Fahad Laber & Nilofer Rasheed & Aisha Khursheed, 2016. "Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions: Empirical Evidence from Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 73-79.
    2. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    3. H. Kent Baker & Satish Kumar & Nisha Goyal, 2019. "Personality traits and investor sentiment," Review of Behavioral Finance, Emerald Group Publishing Limited, vol. 13(4), pages 354-369, June.
    4. S. Chatterjee & M. Finke & N. Harness, 2011. "The impact of self-efficacy on wealth accumulation and portfolio choice," Applied Economics Letters, Taylor & Francis Journals, vol. 18(7), pages 627-631.
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