Modeling the Determinants of Stock Market Investment Intention and Behavior Among Studying Adults: Evidence from University Students Using PLS-SEM

Dostonbek Eshpulatov (), Gayrat Berdiev and Andrey Artemenkov
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Dostonbek Eshpulatov: Department of Accounting and Finance, Gulistan State University, Gulistan 120100, Uzbekistan
Gayrat Berdiev: Department of Accounting and Finance, Gulistan State University, Gulistan 120100, Uzbekistan
Andrey Artemenkov: Department of Finance, Westminster International University in Tashkent, Tashkent 100047, Uzbekistan

IJFS, 2025, vol. 13, issue 3, 1-29

Abstract: The development of stock markets is pivotal for economic growth, particularly through the mobilization of idle resources into productive investments. Despite recent reforms to enhance Uzbekistan’s capital market, public engagement remains limited. This study examines the behavioral determinants of stock market investment intention and participation among university students, employing the Theory of Planned Behavior (TPB) and Partial Least Squares Structural Equation Modeling (PLS-SEM). The model investigates the influence of digital literacy, financial literacy, social interaction, herding behavior, overconfidence bias, risk tolerance, and financial well-being on investment intention and behavior. A survey of 369 university students was conducted to assess the proposed relationships. The results reveal that risk tolerance, overconfidence bias, and herding behavior significantly and positively affect investment intention, while digital literacy demonstrates a notable negative effect, suggesting caution in assuming technology readiness automatically translates to investment readiness. Investment intention, in turn, strongly predicts actual participation and mediates several of these effects. Conversely, financial literacy, financial well-being, and social interaction showed no significant direct or mediating influence. Additionally, differences according to gender and academic background were observed in how intention translates into behavior. The findings underscore the need for integrated financial and behavioral education to enhance market participation and contribute to policy discourse on youth financial engagement in emerging economies.

Keywords: stock market participation; investment intention; financial literacy; digital literacy; risk tolerance; overconfidence bias; herding behavior; social interaction (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
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