Does Financial Attitude Lead to Financial Satisfaction? Empirical Evidence from Individual Investors in Jaffna District, Sri Lanka

Abstract

The investors from Jaffna District are found to be transforming from the traditional investment approaches towards stock market investment avenues. Therefore, the objective of this study is aimed at finding the impact of financial attitude on financial satisfaction based on the investors in Colombo Stock Exchange (CSE) in Jaffna District, Sri Lanka and the research question is to examine to what extent the financial attitude impacts financial satisfaction of the investors in CSE in Jaffna District. The questionnaire was collected from 200 respondents, who participated in the investment awareness session conducted by CSE from 2017 – 2020, during the period from May- June 2020. Out of that 14 responses were removed since those were not duly completed. The structured questionnaire was amended according to the Sri Lankan context and convenient sampling was used for the data collection. The study used financial attitude as the independent variable and financial satisfaction as the dependent variable. Further, the research techniques tested the reliability of the data, demographic factor analysis, correlation, and regression. The regression results indicated a positive significant impact of financial attitude on financial satisfaction. Based on the findings, it was found that the investors who are moving towards the stock market investment avenues by deploying their financial attitude are financially satisfied with their decisions. The findings are significant for key policymakers in CSE to consider the behavior of the potential investment market and for the companies listed under CSE. The study, therefore, suggests that capital-seeking institutions should focus on potential fund providers by conducting effective workshops and proper financial awareness on decision making.