EXAMINING THE ROLE OF FINANCIAL LITERACY AND PERCEIVED BEHAVIORAL CONTROL IN INVESTMENT DECISION-MAKING: EVIDENCE FROM GEN Z AND MILLENNIALS
DOI:
https://doi.org/10.29121/ijetmr.v13.i4.2026.1757Keywords:
Financial Literacy, Perceived Behavioral Control, Investment Decision-Making, Gen Z, Subjective Norms, Social Factors, Behavioral FinanceAbstract
Investment decision-making has become increasingly important in contemporary financial environments, particularly among younger and middle-aged individuals who are exposed to expanding investment opportunities, digital financial platforms, and information-rich market environments. In this context, financial literacy and perceived behavioral control have emerged as two important determinants of how individuals evaluate, plan, and execute investment decisions. The present study examined the role of financial literacy and perceived behavioral control in investment decision-making among Gen Z and Millennial respondents. The study also considered the influence of social factors and subjective norms in order to provide a broader behavioral explanation of investment behaviour. Primary data were collected from 480 respondents through a structured questionnaire, and the relationships among the constructs were assessed through structural equation modeling. The findings indicate that financial literacy significantly improves investment decision-making both directly and indirectly through perceived behavioral control. The results further show that perceived behavioral control acts as an important explanatory mechanism, suggesting that financial knowledge alone is not sufficient unless individuals also feel confident in their capacity to make sound investment choices. The generation-wise analysis reveals that these relationships remain meaningful for both Gen Z and Millennials, although the relative influence of confidence and social inputs may vary across age groups. The study contributes to the growing literature on financial behaviour by highlighting that rational investment participation is shaped not only by knowledge but also by perceived capability and behavioural readiness. The findings offer useful implications for policymakers, educators, and financial service providers seeking to improve financial decision-making among emerging and active investor groups.
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