Published June 30, 2026
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Impact of Financial Literacy and Risk Perception on Investment Decision: A SEM Study of the Lucknow and Kanpur Districts in Uttar Pradesh, India
Authors/Creators
- 1. Assistant Professor, Department of Commerce, Har Sahai P.G. College, Kanpur Nagar (U.P.), India.
Contributors
Contact person:
Researcher (3):
- 1. Assistant Professor, Department of Commerce, Har Sahai P.G. College, Kanpur Nagar (U.P.), India.
- 2. Assistant Professor, Department of Commerce at Har Sahai P.G. College, Kanpur Nagar (U.P.), India.
- 3. Research Scholar, Department of Commerce, Har Sahai P.G. College, Kanpur Nagar, (U.P.), India.
- 4. Research Scholar, Department of Commerce at Har Sahai P.G. College, Kanpur Nagar, (U.P.), India.
Description
Abstract: The current study uses a Structural Equation Modelling (SEM) approach to analyse and develop a model, i.e., the impact of financial literacy and risk perception on investment decisions. Primary data were collected from respondents in Lucknow and Kanpur and were investigated using factor analysis and SEM. The results disclose a strong three-factor structure explaining 79.46% of the total variance, depicting strong construct validity. The structural model indicates that financially literate investors can perceive risk and make investment decisions judiciously. Moreover, risk perception is strongly influenced by financial literacy, emphasising its indirect impact on investment choices.
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Additional details
Identifiers
- DOI
- 10.35940/ijmh.J1882.12100626
- EISSN
- 2394-0913
Dates
- Accepted
-
2026-06-15Manuscript received on 27 May 2026 | First Revised Manuscript received on 30 May 2026 | Second Revised Manuscript received on 06 June 2026 | Manuscript Accepted on 15 June 2026 | Manuscript published on 30 June 2026
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