Determinants of Intention and Investment Behaviour of Youth in Kosovo: A Partial Least Squares Structural Equation Model (PLS-SEM) Approach

Introduction:In this era, financial literacy is conceptualised diversely in the literature. However, as a general term, ‘Financial Literacy’ can be said to mean acting in line with one’s material realities whilst using or managing money. Increasing the financial literacy rate amongst students in Kosovo is paramount since it will prepare and support them in making informed investment decisions and in managing their financial situations. Aim:The study aims to determine the financial literacy levels of students in Kosovo and to determine the relationship between investment decisions and the Covid-19 pandemic. Method:The dataset examines four factors (i.e. financial literacy, self-control, peer influence and COVID-19) that influence investment behaviour amongst young students in Kosovo. A total of 228 students from Kosovo participated in the study, and the survey measured their financial literacy, investment knowledge, and the COVID-19 impact on their investment decisions using the random sampling technique. The reflective measurement was made using the Partial Least Squares Structural Equation Model (PLS-SEM) on the data scanned from the survey (N= 228). The measurement includes the evaluation of external loading, internal reliability, and convergent reliability. The final equation model was evaluated and estimated using the Smart-PLS v.3.3.3 program. Findings:The research findings are useful for companies seeking potential investors from generation Y. In addition to that, the results of the research show that students from Kosovo who are more financially literate are more skilled and make more well-informed decisions when investing. In this study, it was determined that the COVID-19 pandemic did not have a negative effect on the investment decisions of students from Kosovo.