Thi Kim Nguyen|Kieu Minh Nguyen
Role of Financial Literacy and Peer Effect in Promotion of Financial Market Participation: Empirical Evidence in Vietnam
Ho Chi Minh City Open University|Hoa Sen University|Ho Chi Minh City Open University
research examines interactions financial literacy peer effect indicators impact financial market participation vietnamese investorsin research financial literacy indicator constructed two levels namely basic financial literacy advanced financial literacyan empirical study carried investigating 387 individuals currently working financerelated areas banking insurance real estate industriesthe findings indicate individuals higher level financial literacy specifically advanced financial literacy level tend participate financial markethowever individuals basic financial literacy level tend walk away financial market nexus basic financial literacy financial market participation found negative statistically significantthe findings also suggest peer effect perceived financial literacy positive significant relationship financial market participationthese findings remain robust endogenous problem addressed employing instrument variable iv method especially ivprobit regressionhence findings recommend policymakers design develop financial literacy programs specifically sophisticated level adapt overtake trend financial innovation developmentthis done individual also national scale ensure greater financial market participation