Ivy S.H. Hii, Ching Seng Yap, Poh Ling Ho, Abey P. Philip
Guided by the Information-Motivation-Behavioural Skills (IMB) model, this study examines the interplay between financial literacy, attitude towards investing, social norms, and financial self-efficacy (FSE) in influencing individuals’ decisions to invest in risky assets. It also investigates the mediating role of FSE. Data from 400 individuals were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reveal that financial literacy, attitude towards investing, and social norms are positively associated with FSE, which in turn is positively associated with risky assets investment. FSE also serves as a mediator through which financial literacy, attitude, and social norms relate to investment behaviour. Financial literacy and attitude also show direct positive associations with risky asset investment. By extending the IMB model to financial decision-making, this study identifies FSE as a key psychological mechanism, offering practical insights for policymakers, educators, and financial practitioners.