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Financial Literacy, Financial Advice, and Stock Market Participation: Evidence From Malaysia

Journal of Financial Counseling and Planning, Vol 33, Issue 2

Author(s)

Hii, Ivy S.H., Ho, Poh Ling, Yap, Ching Seng, Philip, Abey P.

Abstract

The study examined the influence of financial literacy and financial advice on individuals’ stock market participation in Malaysia. Using survey data from 216 individuals aged 18 years old and above, this study revealed that both financial literacy and financial advice were positively associated with the likelihood of participating in the stock market. Individuals with higher financial literacy, especially advanced financial literacy, were more likely to participate in the stock market. Those who sought advice from financial advisors were also more likely to invest in the stock market. The findings underscore intervention opportunities for regulators, educators and financial advisors in promoting stock market participation in emerging countries.

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