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The Moderating Role of Perceived Risks in the Relationship between Financial Knowledge and the Intention to Invest in the Saudi Arabian Stock Market

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  • Saleh M. Shehata

    (Finance Department, College of Applied Studies and Community Service, Imam Abdulrahman Bin Faisal University, P.O. BOX 1982, Dammam 31441, Saudi Arabia)

  • Alaa M. Abdeljawad

    (Finance Department, College of Applied Studies and Community Service, Imam Abdulrahman Bin Faisal University, P.O. BOX 1982, Dammam 31441, Saudi Arabia)

  • Loqman A. Mazouz

    (Finance Department, College of Applied Studies and Community Service, Imam Abdulrahman Bin Faisal University, P.O. BOX 1982, Dammam 31441, Saudi Arabia)

  • Lamia Yousif Khalaf Aldossary

    (Finance Department, College of Applied Studies and Community Service, Imam Abdulrahman Bin Faisal University, P.O. BOX 1982, Dammam 31441, Saudi Arabia)

  • Maryam Y. Alsaeed

    (Finance Department, College of Applied Studies and Community Service, Imam Abdulrahman Bin Faisal University, P.O. BOX 1982, Dammam 31441, Saudi Arabia)

  • Mohamed Noureldin Sayed

    (Finance Department, College of Applied Studies and Community Service, Imam Abdulrahman Bin Faisal University, P.O. BOX 1982, Dammam 31441, Saudi Arabia)

Abstract

This research study aims to investigate the moderating role of perceived risks in the relationship between financial knowledge (represented by objective knowledge and subjective knowledge) and the intention to invest in the Saudi Arabian Stock Market. The researcher collected data from four hundred Saudi Arabian participants who were interested in investing in the Saudi Arabian Stock Market. The researcher used structural equation modeling (SEM) through the Smart PLS 3.3.2 software to analyze the data. This study’s findings indicate that, in the formation of financial knowledge, the total effect of Subjective knowledge is greater than the total effect of objective knowledge. The findings also indicate that there is a positive relationship between financial knowledge and perceived risks and between financial knowledge and the intention to invest. Finally, the findings indicate that perceived risks have a negative effect on the relationship between financial knowledge and the intention to invest in the Saudi Arabian Stock Market.

Suggested Citation

  • Saleh M. Shehata & Alaa M. Abdeljawad & Loqman A. Mazouz & Lamia Yousif Khalaf Aldossary & Maryam Y. Alsaeed & Mohamed Noureldin Sayed, 2021. "The Moderating Role of Perceived Risks in the Relationship between Financial Knowledge and the Intention to Invest in the Saudi Arabian Stock Market," IJFS, MDPI, vol. 9(1), pages 1-16, January.
    • Handle: RePEc:gam:jijfss:v:9:y:2021:i:1:p:9-:d:488903
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    References listed on IDEAS

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    2. Pallavi Dogra & Arun Kaushal & Prateek Kalia, 2024. "What drives the investment intentions of emerging economy millennials? Examining the effect of financial advertisement with the PLS-SEM," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 276-291, June.
    3. Ibrahim A. Elshaer & Abu Elnasr E. Sobaih, 2023. "Antecedents of Risky Financial Investment Intention among Higher Education Students: A Mediating Moderating Model Using Structural Equation Modeling," Mathematics, MDPI, vol. 11(2), pages 1-18, January.
    4. Norhazimah Che Hassan & Aisyah Abdul-Rahman & Syajarul Imna Mohd Amin & Siti Ngayesah Ab Hamid, 2023. "Investment Intention and Decision Making: A Systematic Literature Review and Future Research Agenda," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    5. Abu Elnasr E. Sobaih & Ibrahim A. Elshaer, 2023. "Risk-Taking, Financial Knowledge, and Risky Investment Intention: Expanding Theory of Planned Behavior Using a Moderating-Mediating Model," Mathematics, MDPI, vol. 11(2), pages 1-17, January.
    6. Parul Kumar & Md. Aminul Islam & Rekha Pillai & Mosab I. Tabash, 2024. "Risk Perception-Perceived Investor Performance Nexus: Evaluating the Mediating Effects of Heuristics and Prospects With Gender as a Moderator," SAGE Open, , vol. 14(2), pages 21582440241, May.

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