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The Effect Of Financial Literacy On Participation In Investment Markets: A Study On University of Health Sciences Students

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  • Barış Sancak

    (İstanbul Üniversitesi İktisat Fakültesi, İktisat Anabilim Dalı, İstanbul; Sağlık Bilimleri Üniversitesi, İstanbul, Türkiye)

  • Dilek Demirbaş

    (İstanbul Üniversitesi İktisat Fakültesi, İstanbul, Türkiye)

Abstract

The purpose of this study is to examine the effect of university students’ financial literacy level on their participation in financial investment markets. For this purpose, a survey was conducted with the participation of 703 undergraduate and associate degree students at the University of Health Sciences. The obtained data were subjected to logistic regression analysis. According to the analysis results, objective financial literacy did not have a significant effect on participation in investment markets. It was determined that perceived financial literacy impacts participation in investment markets. Further, while it was concluded that risk aversion, savings tendency, gender, age, working status, and the presence of family members in the field of finance had an impact on students’ participation in financial investment markets, it was determined that education level was not an explanatory factor on participation in such markets. Additionally, while a positive relationship was found between perceived higher financial literacy, propensity to save, age, being employed, having a family member working in the field of finance, and investing in financial instruments, a negative relationship was determined between risk aversion, being a woman, and investing in financial instruments. Consequently, although students invest in financial instruments based on a rational reason in accordance with their level of financial literacy, in reality, they do not have this level of financial literacy, and their financial investments consist of speculative investments that are not supported by basic investment knowledge. Although they intend to act consciously when making investment decisions, they make unconscious investments without realising it.

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  • Barış Sancak & Dilek Demirbaş, 2024. "The Effect Of Financial Literacy On Participation In Investment Markets: A Study On University of Health Sciences Students," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 11(2), pages 204-225, July.
    • Handle: RePEc:ist:iujepr:v:11:y:2024:i:2:p:204-225
    DOI: 10.26650/JEPR1406361
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    More about this item

    Keywords

    Finance knowledge; Financial literacy; Investment decisions; Financial inclusion; Logistic regression JEL Classification : C93 ; D14 ; G11;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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