Evaluation of Investor’s Financial Attitude towards Trading Activity during Pandemic

Abstract

Investors’trading activities are influenced by their financial attitudes. Even though existing research has recognized and investigated their relationship, behavioral assessments and financial attitude still poses questions. Furthermore, there is a lack of evidence about the trading activity of retail investors in the instance of a health crisis, like COVID-19 pandemic. The aim of study is to fill in the gaps in the existing literature by studying the relative impact of five dimensions of financial attitude on trading activity of retail investors’during the pandemic. We have used five dimensions to measure financial attitude such as financial anxiety, optimism of investors, financial security, self-control, and the need for precautionary savings. We collected 512 responses from retail investors with the help of a structured questionnaire. We analyzed financial attitude and trading activity using SEM to establish the structural relationship. The observed findings disclosed that self-control is the dominant variable followed by financial security, need for precautionary savings, financial anxiety, and optimism.