Abstract:
The complexities of the global financial market have made investment decisions very critical in this fast-paced global world. As a result of these complexities, investment decisions are always affected by psychological and behavioural biases. These biases tend to affect the prices and performance of financial securities being offered for sale on the market. This study aims to investigate the mediating role of personal financial behaviour on the relationship between culture and investment decision-making. A quantitative approach was used for the study, and a systematic sampling technique was used to gather cross-sectional data from 476 respondents. The data was analysed using the Structural Equation Model (SEM) technique by using SmartPLS 3 software. The analysis of the SEM proved that culture has a significant and positive impact on personal financial behaviour. It also revealed that personal financial behaviour has a positive and significant influence on investment decision-making. However, on the mediation role of personal financial behaviour on the relationship between culture and investment decision-making, only risk tolerance was found to be significant. With the exception of income, all the demographic factors which were used as moderators for the relationship between personal financial behaviour and investment decision-making were insignificant. According to the study, culture can mediate the relationship between personal financial behaviour and investment decision-making. The study recommended that government considers the individual investor’s cultural lineage when coming out with investment policies.
