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Investigating The Mediating Role of Financial Literacy on The Relationship Between Women Entrepreneurs’ Behavioral Biases and Investment Decision Making

Gadjah Mada International Journal of Business (GamaIJB) · Vol. 25 No. 1 (2023) · pp. 93–118

DOI
10.22146/gamaijb.65457
ISSN
2338-7238, 1411-1128
Published
2023-02-08
Publisher
Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
Language
eng
License
creativecommons.org/licenses/by-sa/4.0

Abstract

This study investigates the theoretical link between heuristic behavioral factors and the investment decision-making of women entrepreneurs, focusing on the impor­tance of financial literacy as a potential mediator shaping prudent decision-making. We argue that women’s financial literacy is an efficient way to apply behavioral considerations in wise decision making. Using the proportionate stratified sampling method, we collect­ed data from women entrepreneurs who were formally registered in Punjab Province, Pakistan. Owing to the complex model and small sample size, the smart PLS method was applied to analyze the structural relationship between the measured and latent con­structs. The results show that overconfidence and availability heuristics have a significant positive impact on investment decisions, while financial literacy plays an essential inter­vening role between the overconfidence heuristic, availability heuristic, and investment decision-making. Our results support the execution of financial literacy awareness among women entrepreneurs to stimulate their financial decision control and give them the in­dependence to make prudent financial decisions.

Keywords

Collaboration network of the authors

3 authors · 3 co-authorship links · 3 across different organisations

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  • Superior University
  • Sohar University
  • University of Malaya
  • Different organisations
  • Same organisation
  • Affiliation unknown
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Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.ugm.ac.id/gamaijb/oai, first harvested 28 Okt 2026, last seen 28 Okt 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">Investigating The Mediating Role of Financial Literacy on The Relationship Between Women Entrepreneurs’ Behavioral Biases and Investment Decision Making</dc:title>
	<dc:creator>IRAM, TAHIRA</dc:creator>
	<dc:creator>Bilal, Ahmad Raza</dc:creator>
	<dc:creator>Ahmad, Zeshan</dc:creator>
	<dc:subject xml:lang="en-US">business</dc:subject>
	<dc:subject xml:lang="en-US">Heuristic, financial literacy, women entrepreneurs, investment decision</dc:subject>
	<dc:subject xml:lang="en-US">G40, G41</dc:subject>
	<dc:description xml:lang="en-US">This study investigates the theoretical link between heuristic behavioral factors and the investment decision-making of women entrepreneurs, focusing on the impor­tance of financial literacy as a potential mediator shaping prudent decision-making. We argue that women’s financial literacy is an efficient way to apply behavioral considerations in wise decision making. Using the proportionate stratified sampling method, we collect­ed data from women entrepreneurs who were formally registered in Punjab Province, Pakistan. Owing to the complex model and small sample size, the smart PLS method was applied to analyze the structural relationship between the measured and latent con­structs. The results show that overconfidence and availability heuristics have a significant positive impact on investment decisions, while financial literacy plays an essential inter­vening role between the overconfidence heuristic, availability heuristic, and investment decision-making. Our results support the execution of financial literacy awareness among women entrepreneurs to stimulate their financial decision control and give them the in­dependence to make prudent financial decisions.</dc:description>
	<dc:publisher xml:lang="en-US">Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada</dc:publisher>
	<dc:contributor xml:lang="en-US"></dc:contributor>
	<dc:date>2023-02-08</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
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	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.ugm.ac.id/gamaijb/article/view/65457</dc:identifier>
	<dc:identifier>10.22146/gamaijb.65457</dc:identifier>
	<dc:source xml:lang="en-US">Gadjah Mada International Journal of Business; Vol 25, No 1 (2023): January-April; 93-118</dc:source>
	<dc:source>2338-7238</dc:source>
	<dc:source>1411-1128</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/view/65457/35812</dc:relation>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/downloadSuppFile/65457/16348</dc:relation>
	<dc:rights xml:lang="en-US">Copyright (c) 2023 Gadjah Mada International Journal of Business</dc:rights>
	<dc:rights xml:lang="en-US">http://creativecommons.org/licenses/by-sa/4.0</dc:rights>
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