Results suggest that use of Internet, role of financial advisors and education level of individuals are top ranked antecedents, whereas masculinity/feminity, language and power distance in society are the least ranked antecedents of financial literacy.
Authors
Anamika Saharan, Doctoral Research Scholar, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India.
Akash Saharan, Doctoral Research Scholar, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India.
Krishan Kumar Pandey, Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India.
T. Joji Rao, Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India.
Summary
The low level of financial literacy among young adults is a pressing concern at both individual and country levels. Therefore, there is a dire need to understand the best-worst antecedents of financial literacy and how they influence each other.
Methodology
A two-phased multicriteria decision-making (MCDM) technique consisting of best-worst method and interpretive structural modeling (BWM-ISM) was employed for pair-wise comparison, assigning weights, ranking and establishing the relationship among antecedents of financial literacy.
Findings
Results suggest that use of Internet (SF1), role of financial advisors (SF3) and education level of individuals (DS7) are top ranked antecedents, whereas masculinity/feminity, language and power distance in society are the least ranked antecedents of financial literacy. Findings will help both academicians and practitioners focus on the key factors and make efforts to increase financial literacy by minimizing resource usage.
Originality
The current study provides clarity among antecedents of financial literacy by following BWM-ISM approach for the first time in the financial literacy context.
Published in: International Journal of Social Economics
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