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the Impact of Investors’ Beliefs and the Breadth of Their Social Interactions on Their Investment Intentions: The Moderating Role of Financial Literacy
Ghazal Sadeghi yakhdani1 , Ali Azhdari2 , Homayoon Ashkorjiri3
1- Assistant Professor of Economics, Management, and Accounting, Faculty of Humanities and Social Sciences, Ardakan University, Ardakan, Iran (Corresponding Author), gh.sadeghi@ardakan.ac.ir , gh.sadeghi@ardakan.ac.ir
2- Assistant Professor of Economics, Management, and Accounting, Faculty of Humanities and Social Sciences, Ardakan University, Ardakan, Iran, A.Azhdari@ardakan.ac.ir
3- Ph.D. Student, Department of Economics, Management, and Accounting, Faculty of Humanities, Islamic Azad University of Yazd, Yazd, Iran, homayoon.eshkevagiry@gmail.com
Abstract:   (908 Views)
This study examines the impact of investors’ beliefs and social interactions on their willingness to invest in financial and parallel markets, considering the moderating role of financial literacy. The statistical population includes individual investors active in these markets. Data were collected in 2024 from a sample of 400 participants using a standardized questionnaire. Analysis was conducted through structural equation modeling (SEM) with a partial least squares (PLS) approach, using SPSS and SmartPLS software.
The findings indicate that investors' beliefs about financial markets and economic conditions, including optimistic or pessimistic expectations, belief about tail evevnts, and extrapolative beliefs, as well as the breadth of their social interactions, have a significant and positive effect on their investment intentions. However, the moderating effect of financial literacy on these relationships was not supported. The results suggest that these beliefs lead to diverse investment preferences. Moreover, broader social interactions serve as a motivational factor that enhances investors' willingness to participate more actively in investment activities. These findings highlight the importance of considering cognitive and social factors in analyzing investor behavior and can offer valuable insights for market participants.
Keywords: Investors Beliefs, Financial Markts and Economic Conditions, Breadth of Investors’ Social Interactions, Investment Intentions, Financial Literacy.
     
Type of Study: Research | Subject: Special
Received: 2025/01/12 | Accepted: 2025/05/12
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