Investigating the mediating role of financial self-efficacy on the relationship between financial literacy and individuals' investment behavior

Document Type : Original Article

Authors

1 Department of Accounting, Imam Javad Institute of Higher Education, Yazd, Iran.

2 Department of Accounting, University of Science and Arts, Yazd, Iran.

10.22105/fbs.2026.243169
Abstract
Purpose: The aim of this study was to examine the role of financial literacy in improving individuals’ investment behavior and enhancing their financial self-efficacy, in order to highlight the importance of financial literacy in investment decision-making.
Methodology: This research was applied and conducted using a descriptive–survey design in the first half of 2025. The statistical population consisted of individual investors active in the Yazd stock exchange. A total of 384 participants were selected through convenience sampling. Data were collected using a standardized questionnaire and analyzed using the Partial Least Squares (PLS) method via SmartPLS software.
Findings: The results indicated that financial literacy has a positive and significant effect on both investment behavior and financial self-efficacy. In addition, financial self-efficacy was found to have a positive and significant impact on investment behavior.
Originality/Value: This study contributes by simultaneously examining the role of financial literacy and financial self-efficacy in shaping investment behavior, providing new empirical evidence on the importance of financial education in improving investment decisions.

Keywords


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