Financial Literacy and Investment Decisions: Evidence from Pakistan

Abstract

Purpose: This study investigates the key factors associated with financial literacy and examines the effect of financial literacy on investment decisions in Pakistan. Design/Methodology/Approach: The 504 samples were collected via a self-administered questionnaire. The study adopts both OLS and logistic regression techniques to analyze the data. Findings: The findings show that the significant factors which increase financial literacy are father education, father income and marital status. However, guardian occupation decreases financial literacy level. Additionally, the results show that financial literacy can enhance investment decisions. Originality/Value: This study is important to policymakers who can consider these statistically significant factors in efforts to enhance financial literacy as well as investment decisions in Pakistan.