Nexus between Financial Literacy, Investment Decisions and Heuristic Biases of Women Entrepreneurs – A Way forward for Women Empowerment

Abstract

Behavioral factors that compel people to decision-making experiments can promote investment decision-making on a range of critical decisions. Women entrepreneurs in developing markets are chronically exposed to such challenges and may face complications in investment decision-making. We argued that aside from heuristics behavioral factors, women's financial literacy is an integral factor for wise decision making. Also, women’s age is crucial in measuring decision-making prudence for investment. We used a proportionate sampling method to collect data of different age levels from registered women entrepreneurs. SMART-PLS is used for the analysis of data. Results traced the significant mediating role of financial literacy between heuristic behavioral factors and investment decision making. At the same time, the women's age hierarchy indicates prudence in different age slabs. Implications for financial practitioners’ and academicians’ understanding of financial literature's mediating role and the significance of age factors are discussed, which are missing elements in the existing literature.