Factors Influencing the Investment Intentions of Millennials in an Emerging Economy: The Impact of Financial Advertising Using PLS-SEM Evidence from Pakistan
DOI:
https://doi.org/10.55737/trt/v-v.265Keywords:
Financial Investment, Investment Intention, Perceived Risk, Truthfulness, Millennials, PakistanAbstract
There are a number of challenges and risks in the financial sector of Pakistan as it is an inherently risky and volatile industry, especially for new investors to make financial decisions. Access to information is a key factor in dealing with these challenges. This study explores the relationship between financial advertisements and investors' behavioural intentions, mediated by perceived risk. This study helps to validate the conceptual model based on the Stimulus-Organism-Response (SOR) model, and discuss the relationships between the financial advertisement antecedents (information quality, involvement, credibility and truthfulness) and perceived risk and investors' investment intentions. Using partial least squares structural equation modeling (PLS-SEM), data were collected from 307 respondents and analyzed. The study verifies that there are significant relationships between the information quality and truthfulness of financial advertisements and perceived risk. Credibility, and truthfulness, is also determined to be highly correlated with investor intentions. The findings show that five of the nine hypotheses are accepted, and that information quality and information truths negatively affect perceived risk, and information quality, credibility and information truths have a positive effect on intention to invest. This research helps advance the knowledge of the decision-making process of millennial investors in the presence of varying financial promotions and advertisements. The results are useful to policy makers for the development of financial advertising policies or for identifying those disclosures that are especially crucial.
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