Analyzing the Impact of Financial Attitude on Investment Performance with the Mediation of Financial Behavior - Structural Equation Analysis Approach

Understanding the determinants of peoples’ saving and investment behavior is an important issue in ensuring financial stability both at the individual and societal levels and also acts as an important factor in households' resilience in times of economic crisis. An accepted viewpoint in the literature states that higher levels of financial attitude lead to better investment performance. However, some recent studies have emphasized the effect of financial behavior as a mediating factor on this relationship. Using a conceptual model taken from the research literature, this study aimed to investigate the impact of financial attitudes on investment performance and the mediating effect of financial behavior on this relationship among young academics. Financial behavior or financial habits are formed gradually during the developmental stages of the individual in the family and society. For this purpose, a survey was conducted using an online questionnaire at the level of Arak University students and data from 306 students was collected. In this research, the structural equation modeling (SEM) approach was used to analyze the conceptual model. The findings of this research indicate that financial attitudes have a direct and positive effect on investment performance. It also implies that financial behavior acts as a mediator in the relationship between financial attitudes and investment performance and reinforces this relationship.