Symposia & Conferences
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Item The Impact of Financial Literacy and Risk Aversion on Investment Choices of Undergraduates in Sri Lanka(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) De Silva, D.N.W.; Lasantha, S.A.R.This study investigates the impact of financial literacy and risk aversion on investment choices of undergraduates in a developing country context. The study was conducted as a cross sectional survey using a sample of 200 undergraduate in Sri Lanka. Data were collected by means of a structured questionnaire. Investment choice was measured in terms of an unordered categorical variable. Risk aversion, and financial literacy was measured using standard questions. The study shows that financial literacy significantly influences the choice of equity and debt instruments relative to savings deposits. Moreover, the relationship is found to be positive indicating that the increase in financial literacy results higher chances of choosing equity and debt instruments as opposed to savings deposits. Relationship of risk aversion and choice of equity and debt instruments found to be negative but significant only at 10% level. Choice of retirement plans relative to savings deposits is also significantly influenced by financial literacy and the relationship is found to be positive. Moreover, when the individuals are more risk averse they are more likely to choose retirement plans relative to savings but the relationship is insignificant. Findings reveal the importance of financial literacy of individuals.Item Financial Literacy and Credit Choice of Consumer Credit Users in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Lasantha, S.A.R.; Pathirawasam, C.Financial literacy of individuals matters in credit decisions specially when choosing among different credit alternatives. This study investigates the financial literacy level of consumer credit users in Sri Lanka and their credit choice. For this purpose primary data was collected from 445 individuals using a survey instrument. Individuals have displayed a moderate level of financial literacy and it is found that there is no significant difference between the financial literacy levels of males and females. Despite the financial literacy level, most individuals have resorted to high cost credit cards compared to low cost bank borrowings. This may imply a behavior that deviate from the rationality. It demands further research to determine the possible factors affecting the deviation from rationality. Further this research finds that individuals below the age of 25 have lower financial literacy level. It may imply that they are susceptible to higher credit related risks.