Examining the relationship between financial literacy and demographic factors and the overconfidence of Saudi investors

Abstract

The study explores the effects of demographic factors on basic and advanced financial literacy and financial knowledge perception. Complete data from 468 investors were collected via convenience sampling and analyzed with various technologies. Saudi investors did better on basic than advanced financial literacy questions. The regression result reveals that most demographic factors affect basic and advanced financial literacy. Only income level and occupation affect overconfidence in financial expertise. The current study is unique to the Saudi context and gives policy implications to increase financial knowledge among Saudi Arabians to promote better financial well-being and avert future financial distress.