FINANCIAL LITERACY, INVESTMENT HORIZONS AND SPECULATIVE STOCK CHOICES: A STUDY IN THE VIETNAM STOCK MARKET
DOI:
https://doi.org/10.33736/ijbs.14463.2026Keywords:
Financial literacy, investment horizons, speculative stock choices, VietnamAbstract
Financial literacy plays an important role in financial decisions. However, the relationship between financial literacy, investment horizon, and risk-taking decisions has still been underexplored. Therefore, this study investigates the effects of financial literacy on speculative stock choices. Based on 450 individual investors, the results show that financial literacy affects short-term investment and speculative stock choices. Financially literate investors are more likely to invest in short term stocks and choose speculative stocks. Finally, short investment horizons is directly associated with speculative stock choices, and financial literacy is indirectly related to speculative stock choices via short investment horizons. This implies that financially savvy investors should allocate their portfolios appropriately between short-term and long-term investments to avoid losses due to market volatility.
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