Does the Financial Literacy of Academicians Predict their Investment Decisions? A Higher Order SEM Method for Estimation

Abstract

This research intends to investigate the influence of financial literacy on the investment decisions made by the academicians of higher educational institutes in the Uttarakhand region of India. Data from 400 respondents was collected utilizing a non-probability convenient sampling. The current study enumerates financial literacy and Investment decisions as concepts with several facets. Consequently, the study uses PLS-SEM and aims to validate investment decisions and financial literacy as higher-order constructs. The results demonstrate a favorable impact of Financial Literacy on academician’s investment decisions.  The measurement model findings further support interpreting financial literacy and investment decisions as higher-order models. The conclusion suggests the need for more research on academicians, as they are crucial in imparting financial literacy to students, that can help them make well-informed investment decisions. The study carries implications for the government and policymakers striving to enhance individuals’ Financial Literacy for making prudent investment choices.