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

Saleh M. Shehata; Alaa M. Abdeljawad; Loqman A. Mazouz; Lamia Yousif Khalaf Aldossary; Maryam Y. Alsaeed; Mohamed Noureldin Sayed

doi:10.3390/ijfs9010009

International Journal of Financial Studies (Jan 2021)

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

Saleh M. Shehata,
Alaa M. Abdeljawad,
Loqman A. Mazouz,
Lamia Yousif Khalaf Aldossary,
Maryam Y. Alsaeed,
Mohamed Noureldin Sayed

Affiliations

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

DOI: https://doi.org/10.3390/ijfs9010009
Journal volume & issue: Vol. 9, no. 1
p. 9

Abstract

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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.

Published in International Journal of Financial Studies

ISSN: 2227-7072 (Online)
Publisher: MDPI AG
Country of publisher: Switzerland
LCC subjects: Social Sciences: Finance
Website: http://www.mdpi.com/journal/ijfs

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