The effect of financial literacy and risk perception on investment delection in tehran stock exchange

Subject Areas : Financial engineering

ATENA HASANZADEH ¹ , Abdolmajid Dehghan ² , mohsen alikhani ³

1 - graduate of financial management, Faculty of Management and Accounting, Yadegar Imam Khomeini (RA)shahr-e- Rey Branch, Islamic Azad University, tehran, Iran
2 - Department of Management, Faculty of Management and Accounting, Yadeqar Imam Khomeini (RA)shahr-e- Rey Branch, Islamic Azad University, Tehran, Iran.
3 - Department of Agriculture, Faculty of Engineering, Yadeqar Imam Khomeini (RA) shahr-e- Rey Branch, Islamic Azad University, Tehran, Iran.

Received: 2020-01-18 Accepted : 2019-04-16 Published : 2019-12-22

Keywords: Investment decision, Risk perception, financial literacy,

Abstract :

The purpose of this study is to identify the factors affecting investment decisions and to investigate the relationship between the level of financial literacy of investors and their investment decisions. This is a correlation study and a questionnaire was used to collect data. This questionnaire identifies the factors affecting investor decisions, as well as assesses the level of financial literacy and risk perception of investors. The results show that individual mentality, accounting information, economic information, and personal financial needs affect investment decisions in Iran. While there is no meaningful relationship between financial literacy and investor decisions. It was also determined that age, gender, marital status does not have a significant relationship with investors' decisions, but the level of education has a direct and meaningful relationship with the financial literacy of investors. In addition, the result shows that taking into account the level of risk perception of investors, their risk appetite is influenced by their investment decisions.

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