Investigating the Effects of Investors’ Susceptibility to Interpersonal Influence and Financial Literacy in Determining Objective-Oriented Investment Behavior
Keywords:
Financial literacy, objective-oriented investment behavior, disposition effect, financial self-efficacy, risk attitude, interpersonal influenceAbstract
The objective of this study is to examine how financial literacy and susceptibility to interpersonal influence shape objective-oriented investment behavior through cognitive, motivational, and behavioral mechanisms. This applied, descriptive–survey study was conducted among individual investors in Iran’s capital market with at least two years of continuous investment experience. A convenience sampling method was used, and 369 valid questionnaires were collected. Standardized instruments were employed to measure financial literacy, susceptibility to interpersonal influence, financial self-efficacy, risk attitude, disposition effect, and objective-oriented investment behavior. Data were analyzed using structural equation modeling (SEM) with Smart-PLS. The results indicated that financial literacy has both direct and indirect significant effects on objective-oriented investment behavior, mediated by enhanced financial self-efficacy and reduced disposition effect. Susceptibility to interpersonal influence negatively affected the disposition effect and positively influenced objective-oriented investment behavior. Financial self-efficacy showed a positive direct effect on objective-oriented behavior and a negative effect on the disposition effect. Risk attitude did not exhibit a significant mediating effect; however, its moderating role in the relationship between financial literacy and investment behavior was confirmed. Model fit indices (R² and Q²) demonstrated satisfactory explanatory and predictive power. Financial literacy, interpersonal influence susceptibility, financial self-efficacy, and behavioral biases collectively shape objective-oriented investment behavior. Enhancing financial knowledge alone is insufficient; psychological and behavioral characteristics of investors must also be integrated into interventions and policy designs.
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Copyright (c) 2025 Mahdiyeh Mangeli Kangi (Author); Masoud Sotoudeh (Corresponding author); Mohammad Sarchami (Author)
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