Student Investment Behavior in the Digital Age: Investigating the Role of Financial Communities and Literacy Using TPB

Abstract

The purpose of this research was to assess the impact of online community groups, information available on social media, and financial literacy on students' investment decision behaviour. Along with the empirical testing of the mediating factor, the financial investment intention of students is examined using the Theory of Planned Behaviour as a guiding framework. A survey was conducted using Google Forms with 384 students, employing an adopted questionnaire that utilized a 5-point Likert scale. The data were statistically evaluated using SmartPLS-4 software, a PLS-SEM tool. The results showed a significant positive direct effect of financial literacy, information available on social media, and financial investment intention on student investment decision behavior, with p-values and significance values all less than 0.05. Whereas financial investment intention positively mediates the relationship between financial literacy and student investment decision behaviour, with a p-value of 0.01. However, this study did not find any significant mediating impact between online community groups, information available on social media, and student investment decision behaviour, resulting in p-values above the mentioned threshold of 0.05. Online community groups, on the other hand, although not directly impactful, shape investment behaviour of students indirectly through financial intention, This study holds its significance due to the incorporation of digital investment usefulness in student investment decision behaviour, further the research focuses on students as a target audience which is understated segment in research. This study offers unique insights into the interaction between digital disclosure and financial education in influencing investment patterns among young adults. It suggests targeted participation to enhance financial awareness and intention-driven investment behavior. The research contributes to behavioural finance literature by contextualising TPB in a digital era and highlighting the advancing role of online influences in financial decision-making.