Investment Decisions as a Part of Financial Literacy in the Globalized World

Abstract

Research background: The role of knowledge and information in today’s globalized world is growing. Individual approach and investment preferences play a significant role on a global scale, especially for young adults, who can make full use of investment tools. Purpose of the article: The aim of this paper is to assess the attitude to investment amongst young university students with a focus on risk, availability, and profitability. Methods: Primary data were obtained by quantitative research using a questionnaire survey (n = 1 437) in 2018 amongst full time bachelor’s and master’s degree students at three selected universities. The universities focus on economy and agriculture and each of them is based in a different region of the Czech Republic. In the analytical part of the article, testing of statistical hypotheses was applied. Findings & Value added: The results show that, in terms of risk, 79.19% of respondents prefer the least risky approach. Subsequently, the question whether an investment is available when needed also plays an important role and it is preferred by 70.70% of respondents. Profitability of an investment plays the least important role and it is important for 66.59% of respondents. Statistical evaluation proved a dependence between the gender of respondents and the responses mentioned above (women prefer less risky investments as well as those immediately available to them; on the other hand, men prefer more profitable investments than women).

Keywords

• investment
• profitability
• risk
• student
• university