IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v11y2023i2p453-d1035919.html
   My bibliography  Save this article

Risk-Taking, Financial Knowledge, and Risky Investment Intention: Expanding Theory of Planned Behavior Using a Moderating-Mediating Model

Author

Listed:
  • Abu Elnasr E. Sobaih

    (Management Department, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    Faculty of Tourism and Hotel Management, Helwan University, Cairo 12612, Egypt)

  • Ibrahim A. Elshaer

    (Management Department, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    Faculty of Tourism and Hotel Management, Suez Canal University, Ismailia 41522, Egypt)

Abstract

This research examines the impact of financial knowledge on risky investment intention via the lens of the theory of planned behavior (TPB). The research developed a comprehensive model to test the mediation effect of the three TPB antecedents on the link between financial knowledge and risky investment intention. The research investigates the moderating effect of risk-taking on the link between three TPB constructs and risky investment intention. For these purposes, we used a pre-tested survey, was directed to senior university students in public universities in Saudi Arabia. The findings of SmartPLS showed a significant positive influence of financial knowledge on attitudes towards risky investment, subjective norms (SNs), and perceived behavioral control (PBC). Both SNs and PBC have a significant positive influence on risky investment intention. Nonetheless, the personal attitude of students failed to have a significant direct or mediating influence on risky investment intention. Additionally, risk-taking did not have a moderating effect on the link between personal attitude and risky investment intention. Students belong to a risk-adverse culture, which could justify the insignificant impact of their personal attitudes on risky investment intention. On the other side, SNs and PBC have a mediating effect on the link between financial knowledge and risky investment intention. Risk-taking has a moderating effect on the link between SNs, PBC, and risky investment intention. The research extends the use of TPB by validating its assumptions about driving the investment intention of university graduates.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jmathe:v:11:y:2023:i:2:p:453-:d:1035919
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/11/2/453/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/11/2/453/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philip Roundy & Hunter Holzhauer & Ye Dai, 2017. "Finance or philanthropy? Exploring the motivations and criteria of impact investors," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 13(3), pages 491-512, August.
    2. Tony Reyhanloo & Stefan Baumgärtner & Matthias Haeni & Simone Quatrini & Philippe Saner & Eike von Lindern, 2018. "Private-sector investor’s intention and motivation to invest in Land Degradation Neutrality," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-18, December.
    3. Teemu Kautonen & Marco van Gelderen & Erno T. Tornikoski, 2013. "Predicting entrepreneurial behaviour: a test of the theory of planned behaviour," Applied Economics, Taylor & Francis Journals, vol. 45(6), pages 697-707, February.
    4. Xiaomeng Lu & Jingna Xiao & Yu Wu, 2021. "Financial literacy and household asset allocation: Evidence from micro‐data in China," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(4), pages 1464-1488, December.
    5. 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.
    6. Binswanger, Johannes & Carman, Katherine Grace, 2012. "How real people make long-term decisions: The case of retirement preparation," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 39-60.
    7. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    8. East, Robert, 1993. "Investment decisions and the theory of planned behaviour," Journal of Economic Psychology, Elsevier, vol. 14(2), pages 337-375, June.
    9. Mohammed Abdullah Ammer & Theyazn H. H. Aldhyani, 2022. "An Investigation into the Determinants of Investment Awareness: Evidence from the Young Saudi Generation," Sustainability, MDPI, vol. 14(20), pages 1-25, October.
    10. Shlomo Yitzhaki & Peter Lambert, 2014. "Is higher variance necessarily bad for investment?," Review of Quantitative Finance and Accounting, Springer, vol. 43(4), pages 855-860, November.
    11. Cliff Robb, 2011. "Financial Knowledge and Credit Card Behavior of College Students," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 690-698, December.
    12. Ibrahim A. Elshaer & Abu Elnasr E. Sobaih, 2022. "I Think I Can, I Think I Can: Effects of Entrepreneurship Orientation on Entrepreneurship Intention of Saudi Agriculture and Food Sciences Graduates," Agriculture, MDPI, vol. 12(9), pages 1-18, September.
    13. Meqbel M. Aliedan & Ibrahim A. Elshaer & Mansour A. Alyahya & Abu Elnasr E. Sobaih, 2022. "Influences of University Education Support on Entrepreneurship Orientation and Entrepreneurship Intention: Application of Theory of Planned Behavior," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    14. Viswanath Venkatesh & Fred D. Davis, 2000. "A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies," Management Science, INFORMS, vol. 46(2), pages 186-204, February.
    15. Biljanovska, Nina & Palligkinis, Spyros, 2018. "Control thyself: Self-control failure and household wealth," Journal of Banking & Finance, Elsevier, vol. 92(C), pages 280-294.
    16. Jae Min Lee & Narang Park & Wookjae Heo, 2019. "Importance of Subjective Financial Knowledge and Perceived Credit Score in Payday Loan Use," IJFS, MDPI, vol. 7(3), pages 1-21, September.
    17. Mohamed Ali Shabeeb Ali & Mohammed Abdullah Ammer & Ibrahim A. Elshaer, 2022. "Determinants of Investment Awareness: A Moderating Structural Equation Modeling-Based Model in the Saudi Arabian Context," Mathematics, MDPI, vol. 10(20), pages 1-18, October.
    18. Linda Ariany Mahastanti & Edy Hariady, 2014. "Determining the factors which affect the stock investment decisions of potential female investors in Indonesia," International Journal of Process Management and Benchmarking, Inderscience Enterprises Ltd, vol. 4(2), pages 186-197.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ibrahim A. Elshaer & Abu Elnasr E. Sobaih, 2023. "The Impact of Gender on the Link between Personality Traits and Entrepreneurial Intention: Implications for Sustainable Agriculture," Agriculture, MDPI, vol. 13(2), pages 1-19, February.
    2. Moazzam Moazzam & Muhammad Ahmad & Abid Hussain & Muhammad Azeem Akram, 2023. "Examining the Factors That Shape Green Purchase Behavior: The Role of Subjective Norms, Self-Efficacy, Attitude and Intention," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 221-232.
    3. Meqbel M. Aliedan & Mansour A. Alyahya & Ibrahim A. Elshaer & Abu Elnasr E. Sobaih, 2023. "Who Is Going Green? Determinants of Green Investment Intention in the Saudi Food Industry," Agriculture, MDPI, vol. 13(5), pages 1-17, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Tamer Ayad & Abu Elnasr E. Sobaih & Ibrahim A. Elshaer, 2022. "University Incubator Support and Entrepreneurial Intention among Tourism Graduates: Mediating Role of Personal Attitude," Sustainability, MDPI, vol. 14(23), pages 1-18, December.
    4. Balushi, Yasmeen Al & Locke, Stuart & Boulanouar, Zakaria, 2018. "Islamic financial decision-making among SMEs in the Sultanate of Oman: An adaption of the theory of planned behaviour," Journal of Behavioral and Experimental Finance, Elsevier, vol. 20(C), pages 30-38.
    5. Mohammed Abdullah Ammer & Theyazn H. H. Aldhyani, 2022. "An Investigation into the Determinants of Investment Awareness: Evidence from the Young Saudi Generation," Sustainability, MDPI, vol. 14(20), pages 1-25, October.
    6. Umi Widyastuti & Erie Febrian & Sutisna & Tettet Fitrijanti, 2019. "Factors Explaining the Market Discipline of Sharia Mutual Funds from a Behavioural Finance Perspective: A Theoretical Approach," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 198-212.
    7. Saha, Parmita & Idsø, Johannes, 2016. "New hydropower development in Norway: Municipalities׳ attitude, involvement and perceived barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 235-244.
    8. Mohamed Ali Shabeeb Ali & Mohammed Abdullah Ammer & Ibrahim A. Elshaer, 2023. "Born to Be Green: Antecedents of Green Entrepreneurship Intentions among Higher Education Students," Sustainability, MDPI, vol. 15(8), pages 1-20, April.
    9. Carlos Bazan, 2022. "Effect of the University’s Environment and Support System on Subjective Social Norms as Precursor of the Entrepreneurial Intention of Students," SAGE Open, , vol. 12(4), pages 21582440221, October.
    10. Debora Bettiga & Lucio Lamberti & Emanuele Lettieri, 2020. "Individuals’ adoption of smart technologies for preventive health care: a structural equation modeling approach," Health Care Management Science, Springer, vol. 23(2), pages 203-214, June.
    11. Fayolle, Alain & Liñán, Francisco, 2014. "The future of research on entrepreneurial intentions," Journal of Business Research, Elsevier, vol. 67(5), pages 663-666.
    12. Yu Wang & Shanyong Wang & Jing Wang & Jiuchang Wei & Chenglin Wang, 2020. "An empirical study of consumers’ intention to use ride-sharing services: using an extended technology acceptance model," Transportation, Springer, vol. 47(1), pages 397-415, February.
    13. Paul Juinn Bing Tan, 2013. "Applying the UTAUT to Understand Factors Affecting the Use of English E-Learning Websites in Taiwan," SAGE Open, , vol. 3(4), pages 21582440135, October.
    14. Peter Mantello & Manh-Tung Ho & Minh-Hoang Nguyen & Quan-Hoang Vuong, 2023. "Machines that feel: behavioral determinants of attitude towards affect recognition technology—upgrading technology acceptance theory with the mindsponge model," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-16, December.
    15. Fox, Stephen & Groesser, Stefan N., 2016. "Reframing the relevance of research to practice," European Management Journal, Elsevier, vol. 34(5), pages 457-465.
    16. Mäntymäki, Matti & Salo, Jari, 2013. "Purchasing behavior in social virtual worlds: An examination of Habbo Hotel," International Journal of Information Management, Elsevier, vol. 33(2), pages 282-290.
    17. Fatima Zahra Barrane & Gahima Egide Karuranga & Diane Poulin, 2018. "Technology Adoption and Diffusion: A New Application of the UTAUT Model," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(06), pages 1-19, December.
    18. Asante, Eric Adom & Affum-Osei, Emmanuel, 2019. "Entrepreneurship as a career choice: The impact of locus of control on aspiring entrepreneurs' opportunity recognition," Journal of Business Research, Elsevier, vol. 98(C), pages 227-235.
    19. Joan Torrent-Sellens & Cristian Salazar-Concha & Pilar Ficapal-Cusí & Francesc Saigí-Rubió, 2021. "Using Digital Platforms to Promote Blood Donation: Motivational and Preliminary Evidence from Latin America and Spain," IJERPH, MDPI, vol. 18(8), pages 1-17, April.
    20. Garima Malik & A. Sajeevan Rao, 2019. "Extended expectation-confirmation model to predict continued usage of ODR/ride hailing apps: role of perceived value and self-efficacy," Information Technology & Tourism, Springer, vol. 21(4), pages 461-482, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:11:y:2023:i:2:p:453-:d:1035919. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.