. The Moderating Role of Perceived Risks in the Relationship between Financial Knowledge and the Intention to Invest in the Pakistan Stock Market

Abstract

The purpose of this study is to look into the effects of objective financial knowledge, subjective financial knowledge, and financial attitude on the intention to invest in the stock market, as well as the moderating role of perceived risk in the relationship between financial knowledge and intention to invest in the stock market in Pakistan. The quantitative approach has been used for data collection from the investors and 209 sample responses have been retrieved from the respondents. The results have showed that financial attitude has a positive and significant effect on intention to invest. The objective financial knowledge has a positive but insignificant effect on intention to invest. The perceived risk has a negative but insignificant effect on intention to invest. The subjective financial knowledge has a negative and significant effect on intention to invest. Additionally, moderation results have showed that perceived risk has an insignificant moderation effect between all the relationships. Furthermore, decision-makers in firms whose stock is listed on the Pakistani Stock Exchange must try to lessen the perceived risks that investors face when trading their stock. Aside from dealing with investors with openness, there is a need to monitor and forecast risks throughout time, as well as look for measures to lessen the possibility of their occurring and the consequent losses