Financial Literacy and Behavioral Finance: Conceptual Foundations and Research Issues

Abstract

financial literacy, defined as knowledge and numeracy, Investors decision-making Behaviour defined as how the investors judge, predict, analyses and review the procedures for decision making, which includes investment psychology, information gathering, defining and understanding, research and analysis. In Investors Decision-making Behaviour, the financial literacy plays a crucial effect. Misunderstood personal characteristics within Investors Decision-making Behaviour may generate unrealistic or inaccurate outcomes. Unfortunately, the effect of personal context is nearly ignored in c literature. this paper argues on the interaction between the influence of financial literacy, so as to explain Investors Decision-making Behaviour. This proposition could improve understanding the Investors Decision-making Behaviour and help to resolve inconsistency of findings in the literature.

Keywords: financial literacy; Behavioural Finance; Investors decision-making Behaviour; financial literacy; Palestine stock market.