Financial literacy and stock market participation of DLSU-Manila undergraduate students in 2014

• Main Authors: Abella, Dorothy Minette C., Dominguez, Clarence G., Lim, Joyann C., Ong, Lucibelle Florinda T.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Financial literacy > Philippines; Stock exchanges > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18399
• Institution: De La Salle University

This paper aims to determine the relationship between stock market participation and financial literacy. It looks into the effect of financial literacy on the probability of an individual to directly or indirectly own stocks and/or mutual funds. It also presents the financial literacy of selected DLSU-Manila undergraduate students, coming from all seven colleges of the university. Through a survey, the researchers asked questions on select finance topics to determine the depth of a student's financial literacy. They also asked the students if they participate in the stock market, if they have taken finance classes in college, their gender, and allowance levels. The researchers then used LOGIT regression to analyze their data, complemented by literature reviews to confirm their findings. Among the five variables the researchers used in their model, only advanced financial literacy is found to be a significant factor of stock market participation. The regression results also showed that basic financial literacy is not a significant factor to encourage the investment of students in the stock market. This paper contributes to the limited literature on financial literacy in the Philippines. Aside from measuring financial literacy among the youth, it links financial literacy with a specific asset investment decision.