The Impact of Financial Knowledge on Financial Satisfaction Mediating Role of Personality Traits

Abstract

The main focus in this paper is to study the relationship between financial knowledge and financial satisfaction through mediating role of personality traits. Design/ Methodology: For achieving the purpose of study, 203 investors of Pakistan Stock Exchange were taken as a sample for data collection with convenience sampling technique. The analysis of data was carried out through correlation, simple regression, and mediated regression by Preacher and Hayes. Findings: The findings of present research suggested that financial knowledge positively and significantly impact personality traits and financial satisfaction. This is also confirmed that personality traits mediates the relationship between financial knowledge and financial satisfaction. Originality/ value: Different factors affect the investment decision of an individual therefore this study tends to determine the impact of personality traits and how the access to financial knowledge will lead towards financial satisfaction. Implications: The results can be used by the government and policy makers so that they can take into account the personality traits of an investors as initially it was considered that investor only take decision on the basis of company’s reputation.