FINANCIAL LITERACY AND ADOPTION OF FINTECH THE ROLE OF FINANCIAL RISK TOLERANCE

http://dx.doi.org/10.31703/gssr.2022(VII-I).17      10.31703/gssr.2022(VII-I).17      Published : Mar 1
Authored by : Safyan Majid , Muhammad Gulzaib Chaudhary , Usman Ali

17 Pages : 168-179

References

  • Ab Hamid, M. R., Sami, W., & Mohmad Sidek, M. H. (2017). Discriminant Validity Assessment: Use of Fornell & Larcker criterion versus HTMT Criterion. Journal of Physics: Conference Series, 890, 012163. https://doi.org/10.1088/1742- 6596/890/1/012163.
  • Aguirre-Urreta, M. I., Marakas, G. M., & Ellis, M. E. (2013). Measurement of composite reliability in research using partial least squares: some issues and an alternative approach. ACM SIGMIS Database: The DATABASE for Advances in Information Systems, 44(4), 11–43. https://doi.org/10.1145/2544415.2544417
  • Alarcón, D., Sánchez, J. A., & De Olavide, U. (2015). Assessing convergent and discriminant validity in the ADHD-R IV rating scale: User-written commands for Average Variance Extracted (AVE), Composite Reliability (CR), and Heterotrait- Monotrait ratio of correlations (HTMT). Spanish STATA meeting,
  • Anderson, A., Baker, F., & Robinson, D. T. (2017). Precautionary savings, retirement planning and misperceptions of financial literacy. Journal of financial economics, 126(2), 383- 398.
  • Aoun, J. E. (2017). Robot-proof: higher education in the age of artificial intelligence. MIT press.
  • Atkinson, A., & Messy, F.-A. (2012). Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study.
  • Bannier, C. E., & Neubert, M. (2016). Gender differences in financial risk taking: The role of financial literacy and risk tolerance. Economics Letters, 145, 130-135.
  • Bauer, R. A. (1960). Consumer behavior as risk taking. Proceedings of the 43rd National Conference of the American Marketing Association. Chicago, Illinois, 1960,
  • Bayar, Y., Sezgin, H. F., Öztürk, M. F., & ÅžAÅŸmaz, M. N. (2020). Financial Literacy and Financial Risk Tolerance of Individual Investors: Multinomial Logistic Regression Approach.SAGE Open, 10(3), 215824402094571. https://doi.org/10.1177/2158244020945717.
  • Belayeth, H. A., Endut, N., Das, S., Chowdhury, M. T. A., Haque, N., Sultana, S., & Ahmed, K. J. (2019). Does financial inclusion increase financial resilience? Evidence from Bangladesh. Development in Practice, 29(6), 798-807.
  • Berg, G., Guadamillas, M., Natarajan, H., & Sarkar, A. (2020). Fintech in Europe and Central Asia. https://doi.org/10.1596/33591
  • Bernheim, B. D., Skinner, J., & Weinberg, S. (2001). What accounts for the variation in retirement wealth among US households? American Economic Review, 91(4), 832-857.
  • Brown, A., & Slagter van Tryon, P. J. (2010). Twenty-first century literacy: A matter of scale from micro to mega. The Clearing House, 83(6), 235-238.
  • Bruner, G. C., & Kumar, A. (2005). Explaining consumer acceptance of handheld Internet devices. Journal of Business Research, 5(58), 553-558.
  • Bucciol, A., & Zarri, L. (2017). Do personality traits influence investors’ portfolios? Journal of Behavioral and Experimental Economics, 68, 1–12. https://doi.org/10.1016/j.socec.2017.03.001
  • Cesarini, D., Dawes, C. T., Fowler, J. H., Johannesson, M., Lichtenstein, P., & Wallace, B. (2008). Heritability of cooperative behavior in the trust game. Proceedings of the National Academy of Sciences, 105(10), 3721-3726.
  • Charness, G., & Gneezy, U. (2012). Strong evidence for gender differences in risk taking. Journal of Economic Behavior & Organization, 83(1), 50-58.
  • Cheng, T. E., Lam, D. Y., & Yeung, A. C. (2006). Adoption of internet banking: an empirical study in Hong Kong. Decision support systems, 42(3), 1558-1572.
  • Chuang, L.-M., Liu, C.-C., & Kao, H.-K. (2016). The adoption of fintech service: TAM perspective. International Journal of Management and Administrative Sciences, 3(7), 1-15.
  • Coalition, J. (2007). National standards in K-12 personal finance education. In: Washington, DC: Author.
  • Cohn, R. A., Lewellen, W. G., Lease, R. C., & Schlarbaum, G. G. (1975). Individual investor risk aversion and investment portfolio composition. The Journal of Finance, 30(2), 605-620.
  • Conlin, A., Kyröläinen, P., Kaakinen, M., Järvelin, M. R., Perttunen, J., & Svento, R. (2015). Personality traits and stock market participation. Journal of Empirical Finance, 33, 34–50. https://doi.org/10.1016/j.jempfin.2015.06.001
  • Dohmen, T., Falk, A., Huffman, D., Sunde, U., Schupp, J., & Wagner, G. G. (2011). Individual risk attitudes: Measurement, determinants, and behavioral consequences. Journal of the European economic association, 9(3), 522-550.
  • Feng, X., Lu, B., Song, X., & Ma, S. (2019). Financial literacy and household finances: A Bayesian two-part latent variable modeling approach. Journal of Empirical Finance, 51, 119–137. https://doi.org/10.1016/j.jempfin.2019.02.002
  • Frame, W. S., Wall, L. D., & White, L. J. (2018). Technological change and financial innovation in banking: Some implications for fintech.
  • Frost, J., Gambacorta, L., Huang, Y., Shin, H. S., & Zbinden, P. (2019). BigTech and the changing structure of financial intermediation. Economic Policy, 34(100), 761-799.
  • Fu, J., & Mishra, M. (2020). The Global Impact of COVID-19 on Fintech Adoption. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3588453
  • Grable, J. E. (2000). Financial risk tolerance and additional factors that affect risk taking in everyday money matters. Journal of business and psychology, 14(4), 625-630.
  • Grable, J. E., & Joo, S.-H. (2000). A cross- disciplinary examination of financial risktolerance. Consumer Interests Annual, 46, 151-157.
  • Haliassos, M., & Bertaut, C. C. (1995). Why do so few hold stocks? The economic Journal, 105(432), 1110-1129.
  • Hasan, R., Hassan, M. K., & Aliyu, S. (2020). Fintech and Islamic finance: literature review and research agenda. International Journal of Islamic Economics and Finance (IJIEF), 3(1), 75-94.
  • He, M. D., Leckow, M. R. B., Haksar, M. V., Griffoli, M. T. M., Jenkinson, N., Kashima, M. M., Khiaonarong, T., Rochon, M. C., & Tourpe, H. (2017). Fintech and financial services: Initial considerations. International Monetary Fund.
  • Hermansson, C., & Jonsson, S. (2021). The impact of financial literacy and financial interest on risk tolerance. Journal of Behavioral and Experimental Finance, 29, 100450. https://doi.org/10.1016/j.jbef.2020.100450
  • Hsiao, Y.-J., & Tsai, W.-C. (2018). Financial literacy and participation in the derivatives markets. Journal of Banking & Finance, 88, 15-29.
  • Hsu, H. Y., Troncoso Skidmore, S., Li, Y., & Thompson, B. (2014). Forced Zero Cross- Loading Misspecifications in Measurement Component of Structural Equation Models. Methodology, 10(4), 138–152. https://doi.org/10.1027/1614-2241/a000084
  • Huang, J., Nam, Y., & Sherraden, M. S. (2013). Financial knowledge and child development account policy: A test of financial capability. Journal of consumer affairs, 47(1), 1-26.
  • Huston, S. J. (2010). Measuring financial literacy. Journal of consumer affairs, 44(2), 296-316.
  • Jin, C. C., Seong, L. C., & Khin, A. A. (2019). Factors affecting the consumer acceptance towards fintech products and services in Malaysia. International Journal of Asian Social Science, 9(1), 59-65.
  • Kashif, M., & Khaliq, I. (2004). Heritability, correlation and path coefficient analysis for some metric traits in wheat. International Journal of Agriculture and Biology, 6(1), 138- 142.
  • Kim, C., Mirusmonov, M., & Lee, I. (2010). An empirical examination of factors influencing the intention to use mobile payment. Computers in human behavior, 26(3), 310- 322.
  • Leong, C., Tan, B., Xiao, X., Tan, F. T. C., & Sun, Y. (2017). Nurturing a FinTech ecosystem: The case of a youth microloan startup in China. International Journal of Information Management, 37(2), 92-97.
  • Li, Y.-H., & Huang, J.-W. (2009). Applying theory of perceived risk and technology acceptance model in the online shopping channel. World Academy of Science, Engineering and Technology, 53(1), 919- 925.
  • Lusardi, A. (2008). Financial Literacy: An Essential Tool for Informed Consumer Choice? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1336389

References

  • Ab Hamid, M. R., Sami, W., & Mohmad Sidek, M. H. (2017). Discriminant Validity Assessment: Use of Fornell & Larcker criterion versus HTMT Criterion. Journal of Physics: Conference Series, 890, 012163. https://doi.org/10.1088/1742- 6596/890/1/012163.
  • Aguirre-Urreta, M. I., Marakas, G. M., & Ellis, M. E. (2013). Measurement of composite reliability in research using partial least squares: some issues and an alternative approach. ACM SIGMIS Database: The DATABASE for Advances in Information Systems, 44(4), 11–43. https://doi.org/10.1145/2544415.2544417
  • Alarcón, D., Sánchez, J. A., & De Olavide, U. (2015). Assessing convergent and discriminant validity in the ADHD-R IV rating scale: User-written commands for Average Variance Extracted (AVE), Composite Reliability (CR), and Heterotrait- Monotrait ratio of correlations (HTMT). Spanish STATA meeting,
  • Anderson, A., Baker, F., & Robinson, D. T. (2017). Precautionary savings, retirement planning and misperceptions of financial literacy. Journal of financial economics, 126(2), 383- 398.
  • Aoun, J. E. (2017). Robot-proof: higher education in the age of artificial intelligence. MIT press.
  • Atkinson, A., & Messy, F.-A. (2012). Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study.
  • Bannier, C. E., & Neubert, M. (2016). Gender differences in financial risk taking: The role of financial literacy and risk tolerance. Economics Letters, 145, 130-135.
  • Bauer, R. A. (1960). Consumer behavior as risk taking. Proceedings of the 43rd National Conference of the American Marketing Association. Chicago, Illinois, 1960,
  • Bayar, Y., Sezgin, H. F., Öztürk, M. F., & ÅžAÅŸmaz, M. N. (2020). Financial Literacy and Financial Risk Tolerance of Individual Investors: Multinomial Logistic Regression Approach.SAGE Open, 10(3), 215824402094571. https://doi.org/10.1177/2158244020945717.
  • Belayeth, H. A., Endut, N., Das, S., Chowdhury, M. T. A., Haque, N., Sultana, S., & Ahmed, K. J. (2019). Does financial inclusion increase financial resilience? Evidence from Bangladesh. Development in Practice, 29(6), 798-807.
  • Berg, G., Guadamillas, M., Natarajan, H., & Sarkar, A. (2020). Fintech in Europe and Central Asia. https://doi.org/10.1596/33591
  • Bernheim, B. D., Skinner, J., & Weinberg, S. (2001). What accounts for the variation in retirement wealth among US households? American Economic Review, 91(4), 832-857.
  • Brown, A., & Slagter van Tryon, P. J. (2010). Twenty-first century literacy: A matter of scale from micro to mega. The Clearing House, 83(6), 235-238.
  • Bruner, G. C., & Kumar, A. (2005). Explaining consumer acceptance of handheld Internet devices. Journal of Business Research, 5(58), 553-558.
  • Bucciol, A., & Zarri, L. (2017). Do personality traits influence investors’ portfolios? Journal of Behavioral and Experimental Economics, 68, 1–12. https://doi.org/10.1016/j.socec.2017.03.001
  • Cesarini, D., Dawes, C. T., Fowler, J. H., Johannesson, M., Lichtenstein, P., & Wallace, B. (2008). Heritability of cooperative behavior in the trust game. Proceedings of the National Academy of Sciences, 105(10), 3721-3726.
  • Charness, G., & Gneezy, U. (2012). Strong evidence for gender differences in risk taking. Journal of Economic Behavior & Organization, 83(1), 50-58.
  • Cheng, T. E., Lam, D. Y., & Yeung, A. C. (2006). Adoption of internet banking: an empirical study in Hong Kong. Decision support systems, 42(3), 1558-1572.
  • Chuang, L.-M., Liu, C.-C., & Kao, H.-K. (2016). The adoption of fintech service: TAM perspective. International Journal of Management and Administrative Sciences, 3(7), 1-15.
  • Coalition, J. (2007). National standards in K-12 personal finance education. In: Washington, DC: Author.
  • Cohn, R. A., Lewellen, W. G., Lease, R. C., & Schlarbaum, G. G. (1975). Individual investor risk aversion and investment portfolio composition. The Journal of Finance, 30(2), 605-620.
  • Conlin, A., Kyröläinen, P., Kaakinen, M., Järvelin, M. R., Perttunen, J., & Svento, R. (2015). Personality traits and stock market participation. Journal of Empirical Finance, 33, 34–50. https://doi.org/10.1016/j.jempfin.2015.06.001
  • Dohmen, T., Falk, A., Huffman, D., Sunde, U., Schupp, J., & Wagner, G. G. (2011). Individual risk attitudes: Measurement, determinants, and behavioral consequences. Journal of the European economic association, 9(3), 522-550.
  • Feng, X., Lu, B., Song, X., & Ma, S. (2019). Financial literacy and household finances: A Bayesian two-part latent variable modeling approach. Journal of Empirical Finance, 51, 119–137. https://doi.org/10.1016/j.jempfin.2019.02.002
  • Frame, W. S., Wall, L. D., & White, L. J. (2018). Technological change and financial innovation in banking: Some implications for fintech.
  • Frost, J., Gambacorta, L., Huang, Y., Shin, H. S., & Zbinden, P. (2019). BigTech and the changing structure of financial intermediation. Economic Policy, 34(100), 761-799.
  • Fu, J., & Mishra, M. (2020). The Global Impact of COVID-19 on Fintech Adoption. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3588453
  • Grable, J. E. (2000). Financial risk tolerance and additional factors that affect risk taking in everyday money matters. Journal of business and psychology, 14(4), 625-630.
  • Grable, J. E., & Joo, S.-H. (2000). A cross- disciplinary examination of financial risktolerance. Consumer Interests Annual, 46, 151-157.
  • Haliassos, M., & Bertaut, C. C. (1995). Why do so few hold stocks? The economic Journal, 105(432), 1110-1129.
  • Hasan, R., Hassan, M. K., & Aliyu, S. (2020). Fintech and Islamic finance: literature review and research agenda. International Journal of Islamic Economics and Finance (IJIEF), 3(1), 75-94.
  • He, M. D., Leckow, M. R. B., Haksar, M. V., Griffoli, M. T. M., Jenkinson, N., Kashima, M. M., Khiaonarong, T., Rochon, M. C., & Tourpe, H. (2017). Fintech and financial services: Initial considerations. International Monetary Fund.
  • Hermansson, C., & Jonsson, S. (2021). The impact of financial literacy and financial interest on risk tolerance. Journal of Behavioral and Experimental Finance, 29, 100450. https://doi.org/10.1016/j.jbef.2020.100450
  • Hsiao, Y.-J., & Tsai, W.-C. (2018). Financial literacy and participation in the derivatives markets. Journal of Banking & Finance, 88, 15-29.
  • Hsu, H. Y., Troncoso Skidmore, S., Li, Y., & Thompson, B. (2014). Forced Zero Cross- Loading Misspecifications in Measurement Component of Structural Equation Models. Methodology, 10(4), 138–152. https://doi.org/10.1027/1614-2241/a000084
  • Huang, J., Nam, Y., & Sherraden, M. S. (2013). Financial knowledge and child development account policy: A test of financial capability. Journal of consumer affairs, 47(1), 1-26.
  • Huston, S. J. (2010). Measuring financial literacy. Journal of consumer affairs, 44(2), 296-316.
  • Jin, C. C., Seong, L. C., & Khin, A. A. (2019). Factors affecting the consumer acceptance towards fintech products and services in Malaysia. International Journal of Asian Social Science, 9(1), 59-65.
  • Kashif, M., & Khaliq, I. (2004). Heritability, correlation and path coefficient analysis for some metric traits in wheat. International Journal of Agriculture and Biology, 6(1), 138- 142.
  • Kim, C., Mirusmonov, M., & Lee, I. (2010). An empirical examination of factors influencing the intention to use mobile payment. Computers in human behavior, 26(3), 310- 322.
  • Leong, C., Tan, B., Xiao, X., Tan, F. T. C., & Sun, Y. (2017). Nurturing a FinTech ecosystem: The case of a youth microloan startup in China. International Journal of Information Management, 37(2), 92-97.
  • Li, Y.-H., & Huang, J.-W. (2009). Applying theory of perceived risk and technology acceptance model in the online shopping channel. World Academy of Science, Engineering and Technology, 53(1), 919- 925.
  • Lusardi, A. (2008). Financial Literacy: An Essential Tool for Informed Consumer Choice? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1336389

Cite this article

APA

    APA : Majid, S., Chaudhary, M. G., & Ali, U. (2022). Financial Literacy and Adoption of Fintech: The Role of Financial Risk Tolerance. Global Social Sciences Review, VII(I), 168-179. https://doi.org/10.31703/gssr.2022(VII-I).17

CHICAGO

    CHICAGO : Majid, Safyan, Muhammad Gulzaib Chaudhary, and Usman Ali. 2022. "Financial Literacy and Adoption of Fintech: The Role of Financial Risk Tolerance." Global Social Sciences Review, VII (I): 168-179 doi: 10.31703/gssr.2022(VII-I).17

HARVARD

    HARVARD : MAJID, S., CHAUDHARY, M. G. & ALI, U. 2022. Financial Literacy and Adoption of Fintech: The Role of Financial Risk Tolerance. Global Social Sciences Review, VII, 168-179.

MHRA

    MHRA : Majid, Safyan, Muhammad Gulzaib Chaudhary, and Usman Ali. 2022. "Financial Literacy and Adoption of Fintech: The Role of Financial Risk Tolerance." Global Social Sciences Review, VII: 168-179

MLA

    MLA : Majid, Safyan, Muhammad Gulzaib Chaudhary, and Usman Ali. "Financial Literacy and Adoption of Fintech: The Role of Financial Risk Tolerance." Global Social Sciences Review, VII.I (2022): 168-179 Print.

OXFORD

    OXFORD : Majid, Safyan, Chaudhary, Muhammad Gulzaib, and Ali, Usman (2022), "Financial Literacy and Adoption of Fintech: The Role of Financial Risk Tolerance", Global Social Sciences Review, VII (I), 168-179

TURABIAN

    TURABIAN : Majid, Safyan, Muhammad Gulzaib Chaudhary, and Usman Ali. "Financial Literacy and Adoption of Fintech: The Role of Financial Risk Tolerance." Global Social Sciences Review VII, no. I (2022): 168-179. https://doi.org/10.31703/gssr.2022(VII-I).17