IMPACT OF FINANCIAL LITERACY ON INVESTMENT DECISIONS OF EMPLOYED WOMEN IN NEPAL

Abstract

This study examines the relationship between financial literacy, financial attitude, financial influences, financial well-being, and their impact on investment decision-making among Nepalese working women. Using a descriptive and causal comparative research design, data was gathered from 412 female employees across various sectors of the Nepalese economy using convenience sampling. Questionnaires were distributed through accessible channels such as banks, schools, and local shops, having 460 responses, of which 412 were found suitable for analysis. The study employed Microsoft Excel and SPSS for data processing and analysis. Study utilizes mean, standard deviation, correlation and regression analysis to analyze the data. Results indicate significant positive relationships among all studied variables. Specifically, regression analysis highlighted The regression coefficient analysis examines how different factors affect the investment decisions of Nepalese working women. The constant term in the analysis is -0.793, with a t-value of 1.735 and a p-value of 0.443, showing it is not statistically significant. Financial Behavior, with a coefficient (B) of 0.017 and a p-value of 0.892, and Financial Influence, with B = -0.153 and a p-value of 0.143, are also insignificant because their p-values are above the 0.05 threshold. However, Financial Attitude, with B = 0.961 and a p-value of 0.012, and Knowledge about Investment Products, with B = -0.121 and a p-value of 0.015, are significant predictors. Financial Literacy is significant as well, with B = 0.131 and a p-value of 0.042. These results indicate that Financial Attitude, Knowledge about Investment Products, and Financial Literacy significantly impact investment decisions, whereas Financial Behavior and Financial Influence do not.