Work

Framing Effect and Financial Wellbeing: Role of Investment Behaviors as Mediator

Year: 2019

Type: article

Abstract: Based on the premise that human beings are not rational agents and are frame dependent while making investment decisions, this study has found a significant impact of framing effect on investment behaviors and financial wellbeing. Structural Equation Modelling is employed in Stata, on the data collected from 344 respondents from Pakistan (299 salaried persons and 45 businessmen), having more than three years’ experience. We supported the view of behavioral finance that framing effect could influence the financial wellbeing negatively. We extended the analysis further by validating the mediating role of investment behaviors between framing effect and financial wellbeing, which is a contribution to the body of knowledge in the field of behavioral finance.

Source: Review of Economics and Development Studies

DOI: 10.26710/reads.v5i2.555

Authors: Khalil Ur Rehman, Hameeda Akhtar, Syed Zulfiqar Ali Shah

Institution: International Islamic University, Islamabad

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W2946073586

FWCI: 5.103

Cites: 31

Cited by: 16

Related to: 10