Effect of Financial Literacy on Financial Risk Tolerance with Conscientious Personality Mediation. Does the Neuroticism Personality Moderate?

Abstract

This research work makes underpinning of the Financial Risk Seeking through the window of finance education. This study explores that how Conscious personality perform a mediatory role while neurotic personality act as a moderator in the relationship of finance education and financial risk seeking.

For accomplishment of the study purpose, data set is gathered from university students of Faisalabad, Pakistan. The online survey technique is employed for generating the data set which integrated 200 respondents. The PLS (SEM) modelling was used for data analysis.

The path analysis shows that the finance education proved as a statistically noteworthy positive association with financial risk seeking. The conscientious personality trait has a statistically noteworthy direct mediating association between finance education and financial risk bearing. The neurotic personality has inverse and statistically significant moderation association between finance education and financial risk bearing.

This study will be helpful for government, policymakers, wealth managers and scholars for chalking out strategies as well as for individual and institutional investors for rational decision making for best portfolio development.