Investigating the Impact of Financial Literacy on Investment Behaviour of Higher Education Teachers: A PLS-SEM Study in the National Capital Region

Abstract

The study investigates the impact of financial literacy on the investment behaviour of higher education teachers in the National Capital Region (NCR) of India, employing a Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. The research adopts an explanatory design with a quantitative methodology to elucidate the relationship between financial literacy (independent variable) and investment behaviour (dependent variable), while considering income level as a moderating variable. The target population consists of higher education teachers within the NCR region, with a sample size of 412 respondents collected through an online Google Form survey between March 2024 and June 2024. Financial literacy is dissected into three dimensions: Basic Knowledge, Decision Making, and Sources of Knowledge. Investment behaviour is evaluated through four dimensions: Investment Awareness, Investment Preferences, Investment Frequency, and Investment Objectives. The main hypothesis posits that financial literacy positively influences the investment behaviour of higher education teachers in NCR, while the moderation hypothesis suggests that income level strengthens this relationship for higher income groups. The findings are anticipated to provide valuable insights into how financial literacy can be enhanced to foster better investment decisions among educators, ultimately contributing to their financial well-being. This study also aims to inform policy makers and educational institutions about the importance of integrating financial literacy programs into the professional development of teachers.