The Interplay Between Financial Literacy, Financial Risk Tolerance, and Financial Behaviour: The Moderator Effect of Emotional Intelligence

Figures & data

Figure 1 Conceptual model.

Table 1 Validity and Reliability for Constructs

	Loadings	AVE	CR	Cronbach’s Alpha
Financial literacy		0.571	0.880	0.824
FL1	0.687
FL 2	0.812
FL 3	0.783
FL 4	0.723
Emotional intelligence		0.520	0.912	0.864
EI1	0.634
EI2	0.754
EI3	0.780
EI4	0.820
EI6	0.690
EI7	0.564
EI8	0.743
EI9	0.612
EI10	0.723
EI12	0.812
EI13	0.691
EI14	0.671
EI15	0.801
EI16	0.745
Financial risk tolerance		0.514	0.864	0.780
FRT1	0.557
FRT2	0.813
FRT3	0.734
FRT4	0.712
FRT5	0.623
FRT6	0.686
FRT7	0.732
FRT9	0.656
FRT10	0.842
FRT11	0.752
FRT12	0.762
FRT13	0.684
Financial behavior		0.532	0.884	0.834
FB1	0.692
FB2	0.782
FB3	0.792
FB4	0.821
FB5	0.621
FB6	0.666
FB7	0.782
FB8	0.649

Abbreviations: FL, financial literacy; EI, emotional intelligence; FRT, financial risk tolerance; FB, financial behavior; AVE, average variance extracted; CR, composite reliability.

Table 2 Fornell-Larcker Criterion

	FL	EI	FRT	FB
FL	0.765
EI	0.543	0.721
FRT	0.234	0.622	0.716
FB	0.612	0.578	0.526	0.730

Abbreviations: FL, financial literacy; EI, emotional intelligence; FRT, financial risk tolerance; FB, financial behavior.

Table 3 Heterotrait-Monotrait (HTMT) Ratio

	FL	EI	FRT	FB
FL
EI	0.517
	CI.0.900 [0.410;0.601]
FRT	0.766	0.580
	CI.0.900 [0.644;0.872]	CI.0.900 [0.461;0.702]
FB	0.624	0.502	0.586
	CI.0.900 [0.496;0.713]	CI.0.900 [0.420;0.644]	CI.0.900 [0.488;0.692]

Notes: CI, bootstrapping 90% confidence intervals (n=5000) (one-tailed).

Abbreviations: FL, financial literacy; EI, emotional intelligence; FRT, financial risk tolerance; FB, financial behavior.

Table 4 Effects on Endogenous Variables

Hypotheses	β	CI (5%, 95%)	SE	t-value	p-value	Decision	f2	R2	Q2
Age^a	0.054(n.s.)	(−0.040, 0.095)	0.022	0.522	0.546
Gender^b	0.102(n.s.)	(−0.031, 0.173)	0.01	0.782	0.641
Education level^c	0.050(n.s.)	(−0.032, 0.088)	0.032	0.239	0.344
Income level^d	0.011(n.s.)	(−0.045, 0.087)	0.034	1.012	0.180
Marital status^e	0.112(n.s.)	(−0.003, 0.178)	0.024	1.256	0.120
H1 FL → FRT	0.384***	(0.274, 0.488)	0.042	5.071	0.001	Supported	0.219	0.424	0.361
H2 FRT → FB	0.463***	(0.343, 0.572)	0.062	13.905	0.000	Supported	0.318	0.539	0.274
H4 FL x EI → FRT	0.346***	(0.251, 0.458)	0.054	11.839	0.000	Supported	0.156
H5 FL x EI → FB	0.412***	(0.325, 0.514)	0.040	12.728	0.000	Supported	0.219

Notes: ***Significance p < 0.05 (1.96); ^a,b,c,d,eControl variables.

Abbreviations: FL, financial literacy; EI, emotional intelligence; FRT, financial risk tolerance; FB, financial behavior.

Figure 2 Structural equation model.

Figure 3 Moderating effect (1).

Figure 4 Moderating effect (2).

Table 5 Summary of Mediating Effect Tests

	Path	t-value	BCCI		Path	t-value	95% BCCI	Decision	VAF
Total effect FL → FB	0.434	3.448	(0.202, 0.410)	Indirect effect FL → FRT → FB	0.248	5.301	(0.124, 0.318)	Supported	57.14%

Abbreviations: FL, financial literacy; EI, emotional intelligence; FRT, financial risk tolerance; FB, financial behavior; VAF, variance accounted for (indirect effect / total effect) total effect: direct effect + indirect effect.

Table 6 Goodness-of-Fit Index (GFI)

Constructs	AVE	R2
FL	0.571
EI	0.520
FRT	0.514	0.424
FB	0.532	0.539
Average scores	0.534	0.482
	0.510

Abbreviations: AVE, average variance extracted; FL, financial literacy; EI, emotional intelligence; FRT, financial risk tolerance; FB, financial behavior.