Building a Conscientious Personality is Not Sufficient to Manage Behavioral Biases: An Effective Intervention for Financial Literacy in Women Entrepreneurs

Tahira Iram, Ahmad Raza Bilal, Zeshan Ahmad and Shahid Latif

Business Perspectives and Research, 2026, vol. 14, issue 3, 371-392

Abstract: The purpose of this study is to examine the impact of Conscientious personality on women entrepreneurs’ behavioral biases by focusing on financial literacy which is taken as a mediator while the mindfulness as a potential moderator. A random sample of 210 female entrepreneurs working in Pakistan was collected through stratified sampling technique and data are analyzed by using Structural Equation Modeling through SMART-PLS. The results divulged a significant mediating impact of financial literacy in reducing mental accounting bias among consciousness personality possessing women entrepreneurs; however, financial literacy was found related to the risk aversion bias through mindfulness. The moderation analysis further revealed interesting indirect impacts, such that financial literacy strongly reduced mental accounting and risk aversion bias for women who were more conscious of proper financial mindfulness. Nonetheless, financial mindfulness did not catalyze financial literacy and herding bias relationship. By encompassing the concepts of financial literacy, mindfulness, and behavioral biases in consciousness personality’s women entrepreneurs, we offered a comprehensive theoretical framework with practical implications for women entrepreneurs in Pakistan. Thus, we suggest new avenues for the longstanding dilemma related to the factors instigating suboptimal financial decision-making in women entrepreneurs in developing markets.

Keywords: Consciousness personality; financial mindfulness; herding bias; risk aversion bias; mental accounting (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:sae:busper:v:14:y:2026:i:3:p:371-392

DOI: 10.1177/22785337221114675

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