Investigating the Effect of Financial Literacy on the Intention to Invest in the Stock Market, Taking into Account the Tendency and Behavioral Controls of Investors and Emphasizing Moral and Mental Norms

Abstract

: In general, financial literacy is the ability to effectively understand and apply various financial skills, including budgeting for money management and investment, which leads to self-sufficiency in financial principles and ultimately leads to improved financial life. Accordingly, the main purpose of this study can be considered the effect of financial literacy on the intention to invest in the stock market by considering the tendencies and behavioral controls of investors and emphasizing ethical and subjective norms in the Tehran Stock Exchange.The statistical method used for the data analysis is the Structural Equation Model. According to the research questionnaire, the sample size of the research is 125 to 375, which 310 questionnaires were collected and analyzed. The results show that the financial literacy of the investors are meaningfully effective on the tendency of the investor in the stock market. Furthermore, the moral norms of the person also affect the intention of investment.: On the other hand, financial institutions and stock exchanges, considering the issues raised in this study, can consider the rational and irrational reaction of investors, based on financial literacy and emotions along with the source of risk, so that they can make recommendations and instructions

Keywords

• investment intention
• financial literacy
• investors'
• past behavio
• mental and ethical norms