Do trust in financial institution and financial literacy enhances intention to participate in stock market among Indian investors during COVID-19 pandemic?

Figures & data

Figure 1. Conceptual model, Note: TFI = Institutional Trust

Table 2. Demographic profile of investors

Variables	Category	Frequency	Percentage
Gender	Female	178	38.70
	Male	282	61.30
	Total	460	100
Age	18–30	122	26.52
	31–40	183	39.78
	40–50	103	22.39
	51 and above	52	11.31
	Total	460	100
Education	Graduate	289	62.82
	Post-graduate	171	37.18
	Total	460	100
	Total	460	100
Marital status	Unmarried	274	59.56
	Married	186	40.44
	Total	460	100

Table 3. Reliability and validity

Path	Factor loading	Cronbach’s Alpha	rho_A	Composite reliability	Average variance extracted (AVE)	VIF
Attitude (ATT)		0.863	0.875	0.916	0.784	2.517
ATT1	0.856
ATT2	0.922
ATT3	0.877
Subjective Norms (SN)		0.859	0.859	0.914	0.780	2.750
SN1	0.895
SN2	0.881
SN3	0.873
Perceived Behavioral Control (PBC)		0.877	0.88	0.924	0.802	2.488
PBC1	0.897
PBC2	0.907
PBC3	0.882
Financial Literacy (FL)		0.892	0.904	0.925	0.755	1.817
FL1	0.880
FL2	0.885
FL3	0.896
FL4	0.811
Trust in Financial Institution (TFI)		0.930	0.933	0.947	0.782	2.750
TFI1	0.817
TFI2	0.906
TFI3	0.918
TFI4	0.883
TFI5	0.895
Investment Intention		0.915	0.917	0.947	0.807
INT1	0.921
INT2	0.931
INT3	0.923

Source: Calculated by Author.

Table 4. Discriminant validity

Variables	MEAN	St. D	ATT	SN	PBC	TFI	FL	INT
ATT	4.237	1.211	0.885
SN	3.325	1.014	0.803	0.883
PBC	3.152	1.086	0.747	0.853	0.896
TFI	4.247	1.574	0.644	0.714	0.706	0.885
FL	3.415	1.090	0.798	0.828	0.818	0.689	0.869
INT	4.484	1.586	0.635	0.625	0.651	0.768	0.645	0.898
Note(s): For divergent validity, square root of AVE is shown in Bold.

Source: Calculated by the author.

Table 5. Path coefficients

Path	β Coefficient	Standard Deviation	T Statistics	P-values	f^2	Q^2	r^2
ATT→INT	0.170	0.046	3.659	0.000	0.179	0.592	0.657
SN→INT	0.114	0.056	2.015	0.044	0.168
PBC→INT	0.144	0.066	1.175	0.061	0.187
TFI→INT	0.519	0.042	12.344	0.000	0.158
FL→INT	0.111	0.055	2.013	0.045	0.124

Source: Calculated by the author.

Table 1. Loadings and cross-loading

	Attitude	Perceived behavioral control	Subjective norms	Financial literacy	Trust in financial institution	Investment intention
ATT1	0.856	0.595	0.617	0.652	0.454	0.482
ATT2	0.922	0.666	0.729	0.746	0.59	0.614
ATT3	0.877	0.716	0.774	0.716	0.65	0.579
FL1	0.702	0.687	0.731	0.88	0.563	0.545
FL2	0.741	0.7	0.734	0.885	0.612	0.625
FL3	0.718	0.731	0.717	0.896	0.624	0.594
FL4	0.597	0.738	0.698	0.811	0.598	0.454
INT1	0.567	0.577	0.535	0.554	0.675	0.921
INT2	0.6	0.605	0.601	0.601	0.719	0.931
INT3	0.595	0.622	0.597	0.631	0.733	0.923
PBC1	0.681	0.898	0.771	0.752	0.651	0.615
PBC2	0.67	0.907	0.769	0.707	0.641	0.588
PBC3	0.654	0.882	0.752	0.738	0.602	0.542
SN1	0.737	0.725	0.895	0.722	0.655	0.556
SN2	0.674	0.768	0.881	0.734	0.624	0.56
SN3	0.716	0.769	0.873	0.737	0.611	0.541
TFI1	0.527	0.568	0.529	0.569	0.817	0.637
TFI2	0.555	0.626	0.629	0.628	0.906	0.708
TFI3	0.581	0.649	0.657	0.612	0.918	0.707
TFI4	0.598	0.628	0.658	0.596	0.883	0.684
TFI5	0.585	0.646	0.674	0.639	0.895	0.658

Source: Calculated by the author.

Figure 2. PLS algorithm and path.

Table 6. Mediation effect

Path	β Coefficient	Standard Deviation	T Statistics	P-values
SN →TFI → INT	0.371	0.032	11.623	0.000

Source: Calculated by the author.

Table 7. Moderation

Path	β Coefficient	Standard Deviation	T Statistics	P-values
AT*TFI → INT	0.132	0.037	3.556	0.000
PBC*TFI → INT	0.116	0.056	2.07	0.039
TFI*FL → INT	0.101	0.041	2.668	0.046

Source: Calculated by the author.

Table

Constructs	Measurement variables		Sources
Attitude (ATT)	ATT1: Investment in stock market is a good idea		Chen (2007), Taylor and Todd (1995)
	ATT2: Investing in stock market is a wise choice
	ATT3: I like the idea to invest in stock market
Subjective norms (SN)	SN1: My colleagues and friends are investing in stock market		Taylor and Todd (1995)
	SN2: Those have important influence on me think that I should invest in stock market
	SN3: People whose opinion I value would prefer that I should invest in stock market
Perceived behavioural control (PBC)	PBC1: I know where to buy stocks		Taylor and Todd (1995), Bansal and Taylor (2002)
	PBC2: I can identify profitable stocks easily.
	PBC3: I can invest in favourable stocks conveniently
Intention towards Investment (INT)	INT1: I will invest in stock market frequently		Chen (2007)
	INT2: I will encourage my friends and family to invest in stock market
	INT3: I will invest in stock market in near future
Financial literacy (FL)	Compound Interest	FL1: If I have 100 Rupees in my savings account, and the bank provides an interest of 10 per cent per annum, I will have more than 150 Rupees in my account after 5 years, provided that I do not withdraw any	Akhtar and Das (2017)
	Risk Diversification	FL2: I like investing my money into multiple business or investments
	Simple interest (Numerical)	FL3: If I borrow 100 Rupees. It is lower to pay 105 Rupees than to pay 100 Rupees plus 3 per cent
	Inflation	FL4: If the prices of products that I buy today doubles over the next ten years and my income also doubles, I will be able to buy the same product in the same quantity
Trust In Financial Institution (TFI)	TFI1: I am confident that existing policies and regulations protect customers of financial institutions.		Moin et al., 2017
	TFI2: I have faith and confidence in the financial system.
	TFI3: I generally trust financial institutions to act honestly and ethically
	TFI4: I trust financial institutions to stick to rules and regulations.
	TFI5: I trust all financial institutions to ensure that their employees are well trained and professional.

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