AN EXPLANATORY ANALYSIS ON THE INVESTMENT PREFERENCES OF UNIVERSITY STUDENTS WITH RESPECT TO FINANCIAL CHARECTERISTICS AND CRYPTO ASSETS

Year 2023, , 65 - 72, 01.02.2023

Ahmet Rutkay Ardogan Mehmetcan Suyadal Yavuz Gul

https://doi.org/10.17261/Pressacademia.2023.1666

Abstract

Purpose- Considering the diversity of investment instruments and the complexity of financial markets, making the right investment decisions is an important issue for market participants. In addition, rational and irrational factors have an impact on investment decisions. In this context, determining the effect of rational and irrational factors, which can be considered as financial characteristics for an investor, on investment preferences will be beneficial for future investments. The aim of this study is to determine how financial characteristics (financial literacy, self-confidence, risk susceptibility) shape investment preferences by using a sample selected from university students. Another aim of the study is to determine whether investment decisions for crypto assets, which can be considered relatively new compared to traditional assets, are also shaped according to these characteristics.
Methodology- The data obtained in the study were evaluated by frequency analysis and correlation analysis, respectively.
Findings- While the most preferred investment tool by female participants is gold, men are in favor of foreign currency. Cryptoassets are the second choice of male participants. Equity and deposit investment were the least preferred products for both genders. The averages of financial literacy, self-confidence and risk-proneness of male participants are higher than females. When the correlation levels between the investment preferences of the participants are examined, it is seen that the most striking correlation is between cryptoassets and stocks. On the other hand, it was seen that the participants who invested more in cryptoassets were investors with cryptoasset literacy and risk-taking profiles. Finally, it is another finding that male participants prefer to invest in crypto assets approximately three times more than female participants.
Conclusion- The results of the study revealed that the investment preferences of university students differ according to various criteria.

Keywords

Investment preferences, financial literacy, self-confidence, risk susceptibility, cryptoassets

References

• Abreu, M. ve Mendes, V. (2010). Financial literacy and portfolio diversification. Quantitative Finance, 10 (5), 515-528.
• Adil, M., Singh, Y., Ansari, M.S. (2022). How financial literacy moderate the association between behaviour biases and ınvestment decision? Asian Journal of Accounting Research, 7(1), 17-30.
• Al-Tamimi, H.A.H. ve Kalli, A.A.B. (2009). Financial literacy and ınvestment decisions of UAE investors. The Journal of Risk Finance, 10(5), 500-516.
• Biçer, E. B. (2016). Üniversite öğrencilerinin finansal okuryazarlık ile ilgili tutum ve davranışlarının değerlendirilmesi. Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 20(4) , 1519-1533.
• Boshara, R., J. Gannon, L. Mandell, J. W. R. Phillips, S. Sass. 2010. Consumer trends in the public, private, and nonprofit sector. Working paper, National Endowment for Financial Education, Denver, CO.
• Ergün, B., Şahin, A., & Ergin, E. (2014). Finansal okuryazarlık: işletme bölümü öğrencileri üzerine bir çalışma. Journal of International Social Research, 7(34), 98-113.
• Fettahoğlu, S. (2015). Hane halkının finans eğitimi ve finansal okuryazarlık düzeyleri üzerine kocaeli’nde bir araştırma. Muhasebe ve Finansman Dergisi, (67) , 101-116. DOI: 10.25095/Mufad.396581
• Finke, M.S., Howe, J.S., Huston, S.J. (2017). Old age and decline in financial literacy. Management Science, 63 (1), 213-230.
• Hermansson, C. ve Jonsson, S. (2021). The ımpact of financial literacy and financial ınterest on risk tolerance. Journal of Behavioral and Experimental Finance, 29, 1-12.
• Ji, Q., Bouri, E., Lau, C.K.M., Roubaud, D. (2019). Dynamic connectedness and integration in cryptocurrency markets. International Review of Financial Analysis, 63, 257-272.
• Kılıç, Y., Ata, H. A., & Seyrek, İ. H. (2015). Finansal okuryazarlık: üniversite öğrencilerine yönelik bir araştırma. Muhasebe ve Finansman Dergisi, (66), 129-150.
• Kıran, F. , Çetinkaya Bozkurt, Ö. & Tunç, H. (2018). Finansal okuryazarlık ve girişimcilik niyeti arasındaki ilişki: üniversite öğrencileri üzerine bir araştırma. Bucak İşletme Fakültesi Dergisi, 1 (1), 29-51.
• Lin, H.W. (2011). Elucidating rational ınvestment decisions and behavioral biases: evidence from the Taiwanese Stock Market. African Journal of Business Management, 5(5), 1630-1641.
• Lusardi, A., Mitchell, O.S., Curto, V. (2010). Financial literacy among the young. The Journal of Consumer Affairs, 44(2), 358-380.
• Lusardi, A. ve Mitchell, O.S. (2011). Financial literacy and retirement planning in the United States. Journal of Pension Economics and Finance, 10(4), 509-525.
• Noctor, M., Stoney, S., Stradling, R. (1992) Financial Literacy: A Discussion of Concepts and Competences of Financial Literacy and Opportunities for Its Introduction Into Young People’s Learning. Report prepared for the National Westminster Bank, National Foundation for Education Research, London.
• Rooij, M.C.J.V., Lusardi, A., Alessie, R.J.M. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101, 449-472.
• Xi, D., O’Brien, T.L., Irannezhad, E. (2020). Investigating the Investment Behaviors in Cryptocurrency. Journal of Alternative Investments, 23 (2), 141-160.
• Yılmaz, H., & Kaymakçı, T. (2021). Finansal davranışlar ve finansal okuryazarlık ilişkisi. Akademik Hassasiyetler, 8(15), 141-164.
• Yücel, S. & Çiftçi, N. (2018). Üniversite öğrencilerinin finansal okuryazarlık düzeylerinin bazı demografik değişkenler açısından incelenmesi. İnönü Üniversitesi Uluslararası Sosyal Bilimler Dergisi, 7(1), 143-161.
• Zhao, H. ve Zhang, L. (2021). Financial literacy or ınvestment experience: which is more ınfluential ın cryptocurrency ınvestment? International Journal of Bank Marketing, 39(7), 1208-1226.