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Examining the relationship between financial literacy and demographic factors and the overconfidence of Saudi investors

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  • Ansari, Yasmeen
  • Albarrak, Mansour Saleh
  • Sherfudeen, Noorjahan
  • Aman, Arfia

Abstract

The study explores the effects of demographic factors on basic and advanced financial literacy and financial knowledge perception. Complete data from 468 investors were collected via convenience sampling and analyzed with various technologies. Saudi investors did better on basic than advanced financial literacy questions. The regression result reveals that most demographic factors affect basic and advanced financial literacy. Only income level and occupation affect overconfidence in financial expertise. The current study is unique to the Saudi context and gives policy implications to increase financial knowledge among Saudi Arabians to promote better financial well-being and avert future financial distress.

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  • Ansari, Yasmeen & Albarrak, Mansour Saleh & Sherfudeen, Noorjahan & Aman, Arfia, 2023. "Examining the relationship between financial literacy and demographic factors and the overconfidence of Saudi investors," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007589
    DOI: 10.1016/j.frl.2022.103582
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    Cited by:

    1. Wan, Lihong & Zhang, Panpan & Lin, Qi, 2023. "The loss of political connections and corporate financialization," Finance Research Letters, Elsevier, vol. 57(C).

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    More about this item

    Keywords

    Financial literacy; Financial knowledge; Overconfidence; Saudi Arabia; Demographic factors;
    All these keywords.

    JEL classification:

    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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