Financial Literacy, Investor Awareness and Investment Decisions: A Review of Literature
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Date
2023
Authors
Akims, Malgit Amos
Abayomi, Funmilayo Shalom
Akims, Kanang Amos
Kigame, Hannington
Josephat, Eweet Toto
Ouma, Cavine Onyango
Journal Title
Journal ISSN
Volume Title
Publisher
Global Press Hub (GPH) publishers
Abstract
The study was based on a review of literature where various views obtained from theoretical and empirical works were evaluated. Based on a systematic review methodology, the study sought to critically review literature on the relationship between financial literacy and investment decisions. The study further reviewed literature on the nexus between investor awareness and investment decisions relationships. In view of reviewed literature, the study documented that financial literacy, investor awareness and investment decisions have underlying relationships. Specifically, financial literacy leads to sound investment decisions as it provides investors with the capacity and ability to carry out both technical and fundamental analysis which in turn enables them to make informed investment decisions. Furthermore, investor awareness strengthens investment decisions. Investor awareness is characterized by an investor’s level of perception of risks, underlying risk appetite as well as expected rate of return on an investment. As such, improvements in the levels of awareness lead to more informed investment decisions
Description
Article
Keywords
Financial literacy, investor awareness, investment decisions, literature review
Citation
Akims, M. A., Abayomi, F. S., Akims, K. A., Avedi, H. K., Josephat, E. T., & Ouma, C. O. (2023). Financial Literacy, Investor Awareness and Investment Decisions: A Review of Literature. Asian Journal of Economics, Finance and Management, 13-18.