Financial knowledge among Iranian investors

This research is the first to describe financial knowledge in the Islamic Republic of Iran. Data were collected from a convenience sample of investors in the Tehran Stock Exchange. The data were used to examine objective and subjective knowledge as well as overconfidence in one's financial know...

Full description

Saved in:
Bibliographic Details
Published in:International journal of consumer studies 2019-11, Vol.43 (6), p.503-513
Main Authors: Cude, Brenda J., Chatterjee, Swarn, Tavosi, Jamal
Format: Article
Language:English
Subjects:
Bans
Demography
financial knowledge
financial literacy
Interest rates
Investments
Investors
Iran
Islam
Islamic financing
Islamic law
Knowledge
Labor force
overconfidence in financial knowledge
Usury
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This research is the first to describe financial knowledge in the Islamic Republic of Iran. Data were collected from a convenience sample of investors in the Tehran Stock Exchange. The data were used to examine objective and subjective knowledge as well as overconfidence in one's financial knowledge. The results indicated that compared with other populations, Iranians did not perform well on either basic or advanced financial knowledge questions, especially when the questions dealt with interest rates. This is likely related to the Islamic law ban on usury‐based investing. Regression analysis indicated that demographic charactristics related to basic financial knowledge were income, labour force status and being a student. Demographic characteristics related to advanced financial knowledge were education, labour force status and age. Higher income and education reduced the odds of being overconfident about one's financial knowledge, while being a student and male increased the odds. The article concludes with recommendations about future research as well as building a national financial education strategy.
ISSN:1470-6423
1470-6431
DOI:10.1111/ijcs.12535