Volume 22, No.1, 2025
Paper Critique: The Impact Of Financial Literacy On Investment Decisions
Dr. Mahmoud Abdelrehim 1 Prof. Dr. Muzafar Shah Habibullah 2** (Cross ponding Author)
Abstract
This paper critiques the study “The Role of Financial Literacy in Shaping Investment Behavior: Evidence from Emerging Markets” by Johnson et al. (2022), which investigates the relationship between financial literacy and investment behaviors in five emerging economies. Using a cross-sectional design and logistic regression analysis, the study finds a positive association between financial literacy and diversified investment behaviors, moderated by socio-economic factors. While the findings contribute valuable insights to the field, limitations such as reliance on self-reported data and a cross-sectional approach are noted. Recommendations for future research include longitudinal studies and exploring the role of digital financial platforms.
Pages: 26-38
Keywords: Financial literacy, investment behavior, emerging markets, portfolio diversification, behavioral biases, risk tolerance, financial education, socio-economic factors, financial self-efficacy, financial decision-making, stock market participation, digital f