A Model Proposal for Explaining the Investment Behaviour of University Students

Year 2025, Volume: 12 Issue: 1, 196 - 213, 31.03.2025

Hüseyin Gürbüz , Veysel Yılmaz

https://doi.org/10.30798/makuiibf.1471368

Abstract

This study proposes a unique structural model to understand the effects of financial literacy (F- Financial Literacy), lack of self-control (LSC-Lack of Self-Control), peer influence (PI-Peer Influence), parental socialisation (PS-Parental Socialisation) and social media (SM-Social Media) on university students' investment behaviour (IB-Investment Behaviour). The originality of the study lies in combining the effects of these factors on investment behaviour within the framework of a model. In addition to the limited studies in the literature, the study makes both theoretical and practical contributions by conducting hypothesis tests with PLS-SEM analysis. Data were collected from students (n=137) studying at the Faculty of Economics and Administrative Sciences (FEAS) during the summer term of 2023 through an online survey. The analysis revealed that the model is appropriate and financial literacy, lack of self-control, parental socialisation and social media positively affect investment behaviour, while lack of self-control has a negative effect on investment behaviour and only peer effect is not supported. This study provides an important framework for understanding the financial decision-making processes of university students and provides guidance for policy makers and educators.

Keywords

Financial Literacy, Lack of Self-Control, Peer Effect, Parental Socialisation, Social Media, Investment Behaviour

Ethical Statement

Ethics committee approval for the study was obtained from the Eskişehir Osmangazi University Ethics Committee on March 22, 2023, with meeting number 2023-04. The authors declare that the study was conducted in accordance with research and publication ethics. The authors confirm that no part of the study was generated, either wholly or in part, using Artificial Intelligence (AI) tools. The authors affirm that there are no financial conflicts of interest involving any institution, organization, or individual associated with this article. Additionally, there are no conflicts of interest among the authors. The authors affirm that they contributed equally to all aspects of the research.

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