Entrepreneurship boosts up when women are financially literate: A step forward in prudent investment decisions

Abstract

During recent years, factors affecting prospect behavior for investment decision is an attractive issue
inviting the attention of financial researchers. In this paper, we investigate the significant impact of
prospect behavioral factors of women entrepreneurs on their financial investment’s decisions. The sample
of women entrepreneurs in the province of Punjab, Pakistan is taken using the stratified sampling approach.
The Structural Equation Modeling (SEM) is used to analyze the structural relationship between latent
constructs and measured variables. Findings showed that loss aversion, regret aversion, mental accounting
and self-control have a significant influence on financial Literacy and investment decision, whereas the no
impact of regret aversion is traced to women investment decision. This study finding suggests that financial,
educational programs for women entrepreneurs might lead them to take prudent investment decisions.