Effect of Emotional Intelligence on Behavior of Investment: Possible Role of Financial Literacy and Gender

Abstract

Individuals who have control over their emotions can make better and effective investment decisions than those who are less emotionally intelligent. Individuals who have more knowledge about financial terms and stock market can make efficient and effective investment decisions than those who are less financially literate. Positive and significant relationship was found between emotional intelligence and investment behaviour and between financial literacy and investment behaviour. It was found that gender has impact on investment behaviour and that it moderates the relationship between emotional intelligence and investment behaviour and males have higher financial literacy and tend to invest more than females.