The Effect of Financial Information Level on Financial Management Behavior and Investment Behavior

Abstract

Purpose – Individuals investing in the share market must have a certain level of financial knowledge in order to make a profit or not lose money from their investments. In this context, it is to determine how individuals' financial knowledge level and financial competencies affect their financial management and investment behaviors. Design/methodology/aproach – The model of this study is a quantitative research model. The population of the study is individuals who buy and sell shares in the stock market. A survey was administered to 380 individuals among a group of 500 people who actively buy and sell shares in Telagram groups on social media. "Financial Literacy Scale" was used to measure individuals' financial knowledge level, "Financial Management Behavior Scale" was used to measure individuals' financial management behavior, and "Behavioral Finance in Investments Scale" was used to measure individuals' investment behavior. SPPS 24 program was used for analysis. Findings – Firstly, the reliability coefficients of the scales used were found to be (0.813), - (0.804), - (0.851), respectively. Correlation and multiple linear regression analysis were then performed. As a result of the analysis, it was determined that the financial knowledge level of individuals positively affects their financial management and investment behaviors. Discussion – It is seen that individuals' financial knowledge level and financial competence positively affect their financial management and investment behaviors. Therefore, increasing the financial knowledge level of individuals is important in this sense.