Financial literacy has gained much attention amongst scholars, policymakers and other stakeholders due to its role in backing up investment decisions, improving personal financial management and increasing financial wellbeing. This study examines the influence of financial literacy on investment decisions with the moderating effect of the overconfidence behavioural bias. Data were collected from 180 respondents in Saudi Arabia using a questionnaire, and a convenience sampling technique was applied. The study’s findings were analysed using the partial least squares structural equation modelling (...) technique. It was found that financial literacy positively and significantly influenced investment decisions. Moreover, the results show that overconfidence positively affected investment decisions and that the relationship between financial literacy and investment decisions was positively and significantly moderated by overconfidence. (shrink)

This study examined the impact of selected personality traits—innovativeness, internal locus of control, need for achievement and propensity to take risks—on the entrepreneurial intention of Saudi students. The study sample included 165 students from an applied college affiliated with King Faisal University. The participants completed an online self-administered questionnaire, the data from which were analyzed using the partial least squares structural equation modeling method. The findings revealed that the characteristics of innovativeness, internal locus of control and propensity to take risks (...) had a positive relationship with entrepreneurial intention. However, the need for achievement had no relationship with entrepreneurial intention. The study model predicted approximately 25% of the total variance in entrepreneurial intention. It is recommended that in future studies, the sample size should be increased and the scope of the study should be broadened. (shrink)

Institutions significantly impact people’s attitudes and behaviors, both favorably and negatively. The purpose of this article is to examine the influence of several institutions on the intentions and decisions of Saudi entrepreneurs to start a business. Accordingly, the study on which this article is based used cross-sectional data of 3,376 respondents obtained from the Global Entrepreneurship Monitor in 2016. The findings demonstrated that insufficient business legislations and policies have a detrimental impact on the ability to start small businesses. Furthermore, it (...) was discovered that the more media attention is given to successful entrepreneurs, the greater the likelihood of small businesses being established. Surprisingly, the typically high regard for successful entrepreneurs had no positive impact on the establishment of small businesses in Saudi Arabia. Moreover, there was no negative impact of fear of failure on the likelihood of starting small firms. Finally, the influence of control variables, such as age and gender, was also varied. Because the study was limited to the context of Saudi Arabia, future research could focus on expanding the analysis to other Gulf countries and including more institutions. (shrink)