Exploring the Role of Financial Knowledge on Women’s Investment Behavior in the Post-Pandemic Era: Evidence from Odisha

Abstract

Empowering women with the knowledge to manage and grow their wealth can have far-reaching effects, not just for personal financial health but for societal equity and economic growth. Financial education may increase women’s confidence in managing investments, reducing historical gender gaps in investment participation. This study aims to examine the factors affecting women’s investment behavior and the effect of financial knowledge on it in a post-pandemic context. The study concentrates on 560 women investors from different regions of Odisha engaged in various private sectors such as education, banking, healthcare, retail, and e-commerce. The study used a stratified random sampling method, with 25% of the sample extracted from each sector. Data collection was executed through a structured questionnaire including demographic details and 28 potential determinants influencing investment decisions, assessed on a five-point Likert scale. After eliminating incomplete or invalid replies, 530 valid surveys were subjected to Exploratory Factor Analysis (EFA). The Kaiser-Meyer-Olkin (KMO) test assessed sample adequacy, and Bartlett’s Test of Sphericity evaluated variable correlations for factor analysis. This study highlights that financial knowledge significantly influences women’s investment behavior in Odisha, impacting factors such as investor psychology, risk management, market volatility, and decision-making. By enhancing financial literacy, women can make more informed, independent investment choices, contributing to a more equitable financial landscape and reducing gender investment gaps.