The Intersection of Leadership Characteristics, Financial Literacy, And Risk Perception: A Multivariate Analysis of Their Impact on Investment Behaviour Among Women Investors

Abstract

This research explores the dynamic interplay between Emotional Leadership Characteristics (ELC), Informational Leadership Characteristics (ILC), financial literacy, and risk perception, and how these factors collectively shape investment behaviour among women investors. Recognizing the growing participation of women in financial markets, this study aims to uncover the psychological and informational factors that influence their financial decision-making. The research is grounded in the framework of behavioral finance, incorporating leadership traits that reflect both emotional intelligence and informational competence. Emotional Leadership Characteristics (ELC) pertain to an individual's ability to understand, manage, and utilize emotions effectively in decision-making, while Informational Leadership Characteristics (ILC) refer to the capacity to process, interpret, and apply financial knowledge and data. These leadership traits are analyzed in conjunction with financial literacy, which serves not only as a direct influencer of investment behaviour but also as a moderating variable that enhances the impact of leadership characteristics on decision quality. Risk perception, the subjective evaluation of financial risk, is considered a crucial mediating variable that explains how internal traits and knowledge translate into investment choices. The study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to test and validate the hypothesized relationships within the conceptual model. By focusing on the moderating role of financial literacy and the mediating role of risk perception, the research provides a nuanced understanding of how women investors navigate financial decisions. The findings aim to bridge the gap in gender-specific investment studies, offering practical insights for educators, policymakers, and financial advisors seeking to support informed and confident investment behaviour among women.