ISSN: 2225-8329
Open access
Young generations are still unfamiliar with the world of investment. Hence, there is a lack of investment awareness for this group age, especially university students. When it comes to savings, paying for education loans, and other consumptions, most of the young generations today have it harder than their parent’s generation due to economic condition that makes young generations realise that it is harder to earn income and not rely on one source of income. This study was carried out to identify the factors that affect investment awareness among university students. This study examines three variables that could have an impact on investment awareness which are financial literacy, the environment from family support & peers’ perspectives, and personal interests. It directs the development of a unique representation of financial literacy, environment, and personal interest significantly influencing investment awareness among university students. Considered relationships were tested using survey responses from university students studying in Klang Valley either in public or private institutions. The are 151 respondents to be examined using Partial Least Square (PLS-SEM). The questionnaire consisted of 28 items in total. The outcome revealed that there is a significant positive relationship between financial literacy, environment, and personal interest with investment awareness. The most significant is the environmental context of family support and peers. Further research, it is suggested that the researcher focuses on students pursuing a non-finance-related course or major to identify their level of awareness toward investment. Financial education should be accessible for younger generations to make gradual changes for their future.
Ahmad, N. L., Yusof, R., Ahmad, A. S., & Ismail, R. (2019). The importance of financial literacy towards entrepreneurship intention among university students. International Journal of Academic Research in Business and Social Sciences, 9(9), 18-39.
Ahsan, M. H. (2013). Financial literacy research on undergraduate students in Malaysia: Current literature and research opportunities. International Journal of Education and Research, 1(11), 1-12.
Ajzen, I. (1987). Attitudes, traits, and actions: Dispositional prediction of behavior in personality and social psychology. In Advances in Experimental Social Psychology (Vol. 20, pp. 1-63). Academic Press.
Ali, M. A. S., Ammer, M. A., & Elshaer, I. A. (2022). Determinants of investment awareness: A moderating structural equation modeling-based model in the Saudi Arabian context. Mathematics, 10(20), 3829.
Alshebami, A. S., & Aldhyani, T. H. (2022). The interplay of social influence, financial literacy, and saving behaviour among Saudi youth and the moderating effect of self-control. Sustainability, 14(14), 8780.
Amari, M., Salhi, B., & Jarboui, A. (2020). Evaluating the effects of sociodemographic characteristics and financial education on saving behavior. International Journal of Sociology and Social Policy, 40(11/12), 1423-1438.
Ammer, M. A., & Aldhyani, T. H. (2022). An investigation into the determinants of investment awareness: Evidence from the young Saudi generation. Sustainability, 14(20), 13454.
Azizah, N., Shaari, H., Abu, N., & Mohamed, R. K. M. H. D. (2013). Financial literacy:" A study among the university students. Interdisciplinary. Journal Of Contemporary Research in Business, 5.
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 74-94.
Bartley, T. (2011). Transnational governance as the layering of rules: Intersections of public and private standards. Theoretical Inquiries In Law, 12(2), 517-542.
Chinen, K., & Endo, H. (2012). Effects of attitude and background on personal financial ability: A student survey in the United States. International Journal of Management, 29(1), 33.
Dave, D., & Parikh, A. (2022). Preferences of gen Z for investing in socially accountable funds. Journal of Social Commerce, 2(4), 154-166.
Alekam, E. J. M. (2018). The effect of family, peer, behavior, saving and spending behavior on financial literacy among young generations. International Journal of Organizational Leadership, 7, 309-323.
Ford, M. W., & Kent, D. W. (2009). Gender differences in student financial market attitudes and awareness: An exploratory study. Journal of Education for Business, 85(1), 7-12.
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics.
Garg, G., Singh, A., Kaur, A., Singh, R., Kaur, J., & Mahajan, R. (2016). Microbial pectinases: an ecofriendly tool of nature for industries. 3 Biotech, 6, 1-13.
Garman, E. T., & Forgue, R. E. (2011). Personal Financial.
Haji-Othman, Y., & Yusuff, M. S. S. (2022). Assessing reliability and validity of attitude construct using partial least squares structural equation modeling.
Hakim, S. (2021). A study on the awareness about stock market among female in Saudi Arabia. PalArch's Journal of Archaeology of Egypt/Egyptology, 18(12), 127-135.
Hastings, J., & Mitchell, O. S. (2020). How financial literacy and impatience shape retirement wealth and investment behaviors. Journal of Pension Economics & Finance, 19(1), 1-20.
Heniawan, D. A., & Dewi, A. S. (2021). Factors affecting investment awareness: Case study on productive age in Surabaya city. Asian Journal of Research in Business and Management, 3(2), 147-152.
Hilmy, I. (2022). Students can barely survive on monthly allowance. Students Can Barely Survive on Monthly Allowance. Retrieved from https://www.thestar.com.my/news/nation/2022/12/03/students-can-barely-survive-on-monthly-allowance
Jamal Mohammed Esmai Alekam, M. S. (2018). The effect of family, peer, behavior, saving, and spending behavior on financial. International Journal of Organizational Leadership 7, 309-323.
Khatun, M. (2018). Effect of financial literacy and parental socialization on students savings behavior of Bangladesh. International Journal of Scientific and Research Publications (IJSRP), 8(12), 296-305
Kusumaningrum, T. M., Isbanah, Y., & Paramita, R. S. (2019). Factors affecting investment decisions: Studies on young investors. International Journal of Academic Research in Accounting, Finance and Management Sciences, 9(3), 10-16.
Lam, L. W. (2012). Impact of competitiveness on salespeople's commitment and performance. Journal of Business Research, 65(9), 1328-1334.
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. American Economic Journal: Journal of Economic Literature, 52(1), 5-44.
Maharani, A., & Saputra, F. (2021). Relationship of Investment Motivation, Investment Knowledge, and Minimum Capital to Investment Interest. Journal of Law, Politic and Humanities, 2(1), 23-32.
Mandell, L., & Klein, L. S. (2009). The impact of financial literacy education on subsequent financial behavior. Journal of Financial Counseling and Planning, 20(1).
Mpaata, E., Koske, N., & Saina, E. (2021). Does self-control moderate financial literacy and savings behavior relationship? A case of micro and small enterprise owners. Current Psychology, 1-14.
Mpaata, E., Koskei, N., & Saina, E. (2020). Financial literacy and saving behavior among micro and small enterprise owners in Kampala, Uganda: The moderating role of social influence. Journal of Economic, Accounting, and Finance Study, 22-34.
Nicolini, G., Cude, B. J., & Chatterjee, S. (2013). Financial literacy: A comparative study across four countries. International Journal of Consumer Studies, 37(6), 689-705.
Noctor, M., Stoney, S., & Stradling, R. (1992). Financial literacy: A discussion of concepts and competencies of financial literacy and opportunities for its introduction into young people’s learning. National Foundation for Educational Research.
Pervan, M., Curak, M., & Pavic Kramaric, T. (2017). The influence of industry characteristics and dynamic capabilities on firms’ profitability. International Journal of Financial Studies, 6(1), 4.
Prihartono, M. R. D., & Asandimitra, N. (2018). Analysis factors influencing financial management behaviour. International Journal of Academic Research in Business and Social Sciences, 8(8), 308-326.
Salim, A. S., & Pamungkas, A. S. (2022). The influence of financial literacy, parental socialization, and peer Influences on saving Behavior. In 3rd Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2021) (pp. 1356-1361). Atlantis Press.
Shah, S. F., Alshurideh, M., Kurdi, B. A., & Salloum, S. A. (2021). The impact of the behavioral factors on investment decision-making: A systemic review on financial institutions. In Proceedings of the International Conference on Advanced Intelligent Systems and Informatics 2020 (pp. 100-112). Springer International Publishing.
Wagland, S. P., & Taylor, S. (2009). When it comes to financial literacy, is gender really an issue?. Australasian Accounting, Business and Finance Journal, 3(1), 3.
Wold, H. (1982). Soft modelling: the basic design and some extensions. Systems under indirect observation, Part II, 36-37.
Yakob, R., Janor, H., & Khamis, N. (2015). Tahap literasi kewangan dalam kalangan pelajar universiti awam: Kajian di Universiti Kebangsaan Malaysia. Jurnal Personalia Pelajar, 18(1).
Yong, C. C., Yew, S. Y., & Wee, C. K. (2018). Financial knowledge, attitude and behaviour of young working adults in Malaysia. Institutions and Economies, 10(4).
In-Text Citation: (Jusoh et al., 2023)
To Cite this Article: Jusoh, A., Azhar, S., Amin, L., Isa, A., & Adnan, F. (2023). Investment Awareness amongst University Students in Klang Valley Using Partial Least Square (PLS-SEM). International Journal of Academic Research in Accounting Finance and Management Sciences, 13(2), 314–326.
Copyright: © 2023 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode