Journal Press India^®

Author Details ( * ) denotes Corresponding author

This study aims to analyse the existing research on financial literacy, identify key themes, and assess its impact on investors behaviour, capital market involvement, and risk management. The data was extracted from the Scopus, focusing on the period from 2014 to early 2024, encompassing 261 articles. The study employed bibliometric analysis using the Biblioshiny package in R, VOSviewer, and Latent Semantic Analysis (LSA) through Python (Jupyter Notebook) to review the scientific production on financial literacy. The analysis reveals a strong association between financial literacy and positive financial behaviour, including increased investor participation in capital markets and improved risk management. The study identified key research themes in the domain, highlights trend and ongoing developments. The novelty of the study lies in its hybrid analysis technique. This is first kind of study which adopted LSA in addition to bibliometrics analysis. This study contributes to the academic understanding of financial literacy by visualizing trends and offering a comprehensive review of past and ongoing developments, thereby supporting future studies and policy implications.

Keywords

Financial literacy; Investors’ behaviour; Bibliometric analysis; Latent semantic analysis; Financial behaviour

1. Abdulridha. F. & Hussin, N. (2024). Examining the moderating role of financial literacy between determinants of individual behaviour and investment decision-making for Iraqi investors. International Journal of Academic Research in Accounting, Finance and Management Sciences, 14(2), 202-223. Retrieved from http://dx.doi.org/10.6007/IJARA FMS/v14-i2/21422
2. Adil, M., Singh, Y. & Ansari, S. M. (2022). Does financial literacy affect investor’s planned behavior as a moderator? Managerial Finance, 48(9-10), 1372-1390.
3. Agarwal, A., Muralidhar Rao, N. V. & Nogueira, M. C. (2025). Financially savvy or swayed by biases? The impact of financial literacy on investment decisions: A study on Indian retail investors. Journal of Risk and Financial Management, 18(6), 322. Retrieved from https://doi.org/10.3390/jrfm18060322
4. Ahmad, K. & Mohamed, Z. S. (2023). The links between demographic factors and financial literacy among youths. Malaysian Journal of Social Sciences and Humanities (MJSSH), 8(11), e002593. Retrieved from https://doi.org/10.47405/mjssh.v8i11.2593
5. Ali, U., Fatima, H., Rehman, J. & Baloch, S. (2024). Evaluating the impact of financial literacy on investment decisions: A case study of Balochistan, Pakistan. Journal of Entrepreneurship, Management, and Innovation, 6(1), 35-56.
6. Arpana, D. & Naidu, G. (2019). A study on financial literacy and its impact on investment decision of professionals. ZENITH International Journal of Multidisciplinary Research, 9(11), 49–54.
7. Bai, R. (2023) Impact of financial literacy, mental budgeting and self-control on financial wellbeing: Mediating impact of investment decision making. PLoS ONE, 18(11), e0294466. Retrieved from https://doi.org/10.1371/journal.pone.0294466
8. Balasubramnian, B. & Sargent, C. S. (2020). Impact of inflated perceptions of financial literacy on financial decision making. Journal of Economic Psychology, 80, 102306.
9. Bayakhmetova, A., Bayakhmetova, L. & Bayakhmetova, L. (2023). Impact of financial literacy on investment decisions in developing countries: The example of Kazakhstan. Asian Development Policy Review, 11(3), 167–181.
10. Becchetti, L., Caiazza, S. & Coviello, D. (2013). Financial education and investment attitudes in high schools: Evidence from a randomized experiment. Applied Financial Economics, 23(10), 817-836.
11. Bhabha, J. I., Khan, S., Qureshi, Q. A., Naeem, A. & Khan, I. (2014). Impact of financial literacy on saving-investment behavior of working women in the developing countries. Research Journal of Finance and Accounting, 5(13), 118–122.
12. Braunstein, S. F. & Welch, C. (2002). Financial literacy: An overview of practice, research, and policy. Federal Reserve Bulletin, 88(11). Retrieved from https://doi.org/10.17016/BUL LETIN.2002.88-11
13. Bucher-Koenen, T., Lusardi, A., Alessie, R. & Rooij, M. (2014). How financially literate are women? An overview and new insights. PRN: Race. Retrieved from https://doi.org/10.2139/ ssrn.2585187
14. Bustani, B. (2024). Individual Investment: How financial literacy and self-monitoring drive investment decisions. ECo-Buss, 7(1), 646–660. Retrieved from https://doi.org/10.32877/eb.v7i1.1553
15. Byrnes, J. P. (2013). The nature and development of decision-making: A self-regulation model. Psychology Press.
16. Calcagno, R. & Monticone, C. (2015). Financial literacy and the demand for financial advice. Journal of Banking & Finance, 50, 363-380.
17. Calvet, L. E., Campbell, J. Y. & Sodini, P. (2009). Measuring the financial sophistication of households. American Economic Review, 99(2), 393–398.
18. Carman, K. G. & Zamarro, G. (2016). Does financial literacy contribute to food security? International Journal of Food and Agricultural Economics, 4(1), 19.
19. Chawla, D., Bhatia, S. & Singh, S. (2022). Parental influence, financial literacy and investment behaviour of young adults. Journal of Indian Business Research, 14(4), 520-539. Retrieved from https://doi.org/10.1108/JIBR-10-2021-0357
20. Clark, G. L. (2018). Financial literacy: Liberalism, decision-making and social welfare. Retrieved from https://doi.org/10.2139/SSRN.3229728
21. Cupák, A., Fessler, P., Hsu, J. W. & Paradowski, P. R. (2022). Investor confidence and high financial literacy jointly shape investments in risky assets. Economic Modelling, 116, 106033.
22. Dare, S. E., van Dijk, W. W., van Dijk, E., van Dillen, L. F., Gallucci, M. & Simonse, O. (2020). The road to financial satisfaction: Testing the paths of knowledge, attitudes, sense of control, and positive financial behaviors. Journal of Financial Therapy, 11(2), 2. Retrieved from https://psycnet.apa.org/doi/10.4148/1944-9771.1240
23. Fonseca, R., Mullen, K. J., Zamarro, G. & Zissimopoulos, J. (2012). What explains the gender gap in financial literacy? The role of household decision making. Journal of Consumer Affairs, 46(1), 90-106.
24. Goyal, K. & Kumar, S. (2021). Financial literacy: A systematic review and bibliometric analysis. International Journal of Consumer Studies, 45(1), 80–105. Retrieved from https://doi.org/10.1111/ijcs.12605
25. Guiso, L. & Jappelli, T. (2020). Investment in financial information and portfolio performance. Economica, 87(348), 1133-1170.
26. Henager, R. & Cude, B. (2016). Financial literacy and long- and short-term financial behavior in different age groups. Journal of Financial Counseling and Planning, 27, 19-3. Retrieved from https://doi.org/10.1891/1052-3073.27.1.3
27. Hermansson, C. & Jonsson, C. (2021). The impact of financial literacy and financial interest on risk tolerance. Journal of Behavioral and Experimental Finance. Retrieved from https://doi.org/10.1016/j.jbef.2020.100450
28. Hu, X., Cai, Z., Wiemer-Hastings, P., Graesser, A. C. & McNamara, D. S. (2007). Strengths, limitations, and extensions of LSA. In Handbook of latent semantic analysis (pp. 413-438). Psychology Press.
29. Huang, H., Yuan, J., Lin, G. & Chi, J. (2023). Underestimation of financial literacy and financial market participation. Journal of the Asia Pacific Economy, 28(1), 75-100.
30. Hussein, A. S. (2016). Visualizing document similarity using n-grams and latent semantic analysis. In 2016 SAI computing conference (SAI) (pp. 269-279). IEEE.
31. Idris, O. (2023). Discussion on the role of emotional intelligence in financial decision-making. Journal of Policy Options, 6(4), 20-29.
32. Iqbal, M. J., Hassan, S. & Kayani, M. B. (2022). Impact of financial literacy on investment decisions with mediating role of behavioural biases. Global Economics Review, VII(III), 26-43. Retrieved from https://doi.org/10.31703/ger.2022(VII-III).03
33. Kalepalli, Y., Tasneem, S., Teja, P. D. P. & Manne, S. (2020). Effective comparison of LDA with LSA for topic modelling. In 2020 4th International conference on intelligent computing and control systems (ICICCS) (pp. 1245-1250). IEEE.
34. Khan, S. & Hassan, N. (2023). Unlocking the investment puzzle: the influence of behavioral biases & moderating role of financial literacy. Journal of Social Research Development, 4(2), 433-444. Retrieved from https://doi.org/10.53664/JSRD/04-02-2023-17-433-444
35. Kramer, M. M. (2016). Financial literacy, confidence and financial advice seeking. Journal of Economic Behavior & Organization, 131, 198–217.
36. Kumar, P., Pillai, R., Kumar, N. & Tabash, M. I. (2023). The interplay of skills, digital financial literacy, capability, and autonomy in financial decision making and well-being. Borsa Istanbul Review, 23(1), 169-183.
37. Kumari, P., S., V. (2023). Financial literacy among youngsters: a study with special reference to Belthangady taluk. EPRA International Journal of Economic and Business Review, 11(8), Retrieved from https://doi.org/10.36713/epra14149
38. Kurniawan, Y. & Suhartono, H. J. (2023). Travel insurance and risk mitigation literacy. IKHLAS: Journal of Lecturer and Student Community Service, 2(1), 32-41. Retrieved from https://doi.org/10.58707/ikhlas.v2i1.396
39. Lusardi, A. (2014). Financial literacy: Do people know the ABCs of finance? Retrieved from https://doi.org/10.2139/SSRN.2585246
40. Lusardi, A. (2015). Risk literacy. Italian Economic Journal, 1, 5-23. Retrieved from https://doi.org/10.1007/s40797-015-0011-x
41. Lusardi, A. (2019). Financial literacy and the need for financial education: Evidence and implications. Swiss Journal of Economics and Statistics, 155(1), 1-8.
42. Lusardi, A., & Mitchell, O. S. (2008). Planning and financial literacy: How do women fare? American Economic Review, 98(2), 413-417.
43. Lusardi, A. & Tufano, P. (2015). Debt literacy, financial experiences, and over indebtedness. Journal of Pension Economics and Finance, 14(4), 332–368. Retrieved from https://doi.org/ 10.1017/S1474747215000232
44. Majumder, S. & Biswas, D. (2023). A bibliometric and co-occurrence analysis of work-life balance. International Journal of Information Systems and Supply Chain Management, 16(1), Retrieved from https://doi.org/10.4018/IJISSCM.316182
45. Mandal, A., Kovid, R.K. & Saxena, A. (2023). Investigating influence of financial literacy on investment awareness: Mediating role of risk tolerance. MUDRA: Journal of Finance and Accounting, 10(2), 118-136.
46. Maria, I., Clara, M. A. & Domenico, S. (2024). Modeling financial risk attitude: The role of education and financial literacy. Financial Internet Quarterly, 20(2), 1-14. Retrieved from https://doi.org/10.2478/fiqf-2024-0008
47. McNamara, D. S. (2011). Computational methods to extract meaning from text and advance theories of human cognition. Topics in Cognitive Science, 3(1), 3-17.
48. Mitchell, O. & Lusardi, A. (2015). Financial literacy and economic outcomes: Evidence and policy implications. The Journal of Retirement, 3, 107-114. Retrieved from https://doi.org/10.3905/jor.2015.3.1.107.
49. Mohammed, S. H. & Al-augby, S. (2020). LSA & LDA topic modeling classification: Comparison study on e-books. Indonesian Journal of Electrical Engineering and Computer Science, 19(1), 353-362.
50. Morewedge, C. K., Yoon, H., Scopelliti, I., Symborski, C. W., Korris, J. H. & Kassam, K. S. (2015). Debiasing decisions: Improved decision making with a single training intervention. Policy Insights from the Behavioral and Brain Sciences, 2(1), 129-140.
51. Mudzingiri, C. (2024). The effect of financial literacy confidence on financial risk preference confidence. A lab experiment approach. SAGE Open, 14(2). Retrieved from https://doi.org/10.1177/21582440241253911
52. Mudzingiri, C., Muteba Mwamba, J. W. & Keyser, J. N. (2018). Financial behavior, confidence, risk preferences and financial literacy of university students. Cogent Economics & Finance, 6(1), 1512366.
53. Mundy, S. (2009). Financial education programmes in schools. OECD Journal: General Papers, 2008(3), 9–43. Retrieved from https://doi.org/10.1787/gen_papers-v2008-art3-en
54. Mwamba, E. K. (2018). Public perception on service delivery in local authorities: Cases of Lusaka city and Chongwe municipal councils in Lusaka Province [Doctoral dissertation, Cavendish University].
55. Nalini, R., Alamelu, R., Amudha, R. & Motha, L. C. S. (2016). Financial literacy and its contributing factors in investment decisions among urban populace. Indian Journal of Science and Technology, 9(27), 1-9.
56. Nurmelia, N., Fadilla, F. N., Wahyuni, N.A. & Leon, F. M. (2022). Past behaviour, financial literacy, and investment decision-making process of individual investors. SIMAK, 20(01), 55-79. Retrieved from https://doi.org/https://doi.org/10.35129/simak.v20i01.329
57. Payeng, A. & Baruah, D. (2023). Gendered perception towards financial literacy and fintech security risk: A multi method analysis. MANTHAN: Journal of Commerce and Management, 10 (2), 145-163.
58. Pearson, B. & Korankye, T. (2023). The association between financial literacy confidence and financial satisfaction. Review of Behavioral Finance, 15(6), 935-946.
59. Porto, N. & Xiao, J. J. (2016). Financial literacy overconfidence and financial advice seeking. Journal of Financial Services Professionals, 70, 78–88.
60. Putri, L. P., Christiana, I., Kalsum, U., Widya, W. & Justianti, M. (2021). The influence of financial literacy on investment decisions during the pandemic. Journal of International Conference Proceedings, 4(2), 301-308. Retrieved from http://ejournal.aibpmjournals.com/index.php/JICP/article/view/1253
61. Putri, W. Y. N. & Dewi, I. G. A. M. (2020). The influence of financial literacy, financial behavior, and income on investment decision. In Proceedings of the 3rd International Conference on Economics, Business and Management (ICEBM 2019) (pp. 132–137). Atlantis Press. Retrieved from https://doi.org/10.2991/aebmr.k.200520.026
62. Rai, K. & Kothari, C. R. (2023). Mapping the landscape of financial literacy research: A bibliometric review (2000–2022). Journal of Financial Services Marketing, 28(2), 76–92. Retrieved from https://doi.org/10.1057/s41264-022-00146-1
63. Ramalho, T. & Forte, D. (2019). Financial literacy in Brazil – do knowledge and self-confidence relate with behavior? RAUSP Management Journal, 54(1), 77-95.
64. Ray, A. & Thind, D. S. K. (2023). Evaluating the impact of financial literacy programs on investment behaviours: A survey study. European Economic Letters, 13(5), 1592–1607.
65. Rizun, N., Taranenko, Y. & Waloszek, W. (2017). The algorithm of modelling and analysis of latent semantic relations: Linear algebra vs. probabilistic topic models. In International Conference on Knowledge Engineering and the Semantic Web (pp. 53-68). Cham: Springer International Publishing.
66. Rohde, D. L., Gonnerman, L. M. & Plaut, D. C. (2006). An improved model of semantic similarity based on lexical co-occurrence. Communications of the ACM, 8(116), 627-633.
67. Said, R., Manaf, S. & Sumarsih, S. (2023). The effect of financial literacy on risk tolerance as an intervening variable against decision making. SIMAK, 21(02), 284-299. Retrieved from https://doi.org/10.35129/simak.v21i02.474
68. Samanol, S. & Md Zani, R. (2024). Financial literacy and its influence on financial decision: A bibliometric approach. Jurnal Intelek, 19(1), 34-45. Retrieved from https://doi.org/10.24191/ji.v19i1.24432.
69. Sapiri, H., Md Yusof, Z., Misiran, M. & Ashaari, N. N. (2023). Identification of factors and risk assessments on financial literacy: A case study on home purchases. Journal of Computational Innovation and Analytics (JCIA), 2(2), 175–192. Retrieved from https://doi.org/10.32890/jcia2023.2.2.3
70. Senda, D. A., Rahayu, C. W. E. & Rahmawati, C. H. T. (2020). The effect of financial literacy level and demographic factors on investment decision. Media Ekonomi Dan Manajemen, 35(1), 100-111. Retrieved from http://dx.doi.org/10.24856/mem.v35i1.1246
71. Shaheen, F., Tariq, M. A., Zahoor, Q. & Mehmood, A. (2022). Role of financial literacy in investment decisions: exploring the individual investors’ perspective through a qualitative approach. Journal of Business and Social Review in Emerging Economies, 8(04), 719-726.
72. Sharma, D. & Cotton, M. (2021). Bibliometric indices and global health publications. Tropical Doctor, 51(4), 473–474. Retrieved from https://doi.org/10.1177/00494755211044 627
73. Shroff, S. J., Paliwal, U. L., & Dewasiri, N. J. (2024). Unraveling the impact of financial literacy on investment decisions in an emerging market. Business Strategy and Development, 7(1), e337. Retrieved from https://doi.org/10.1002/bsd2.337
74. Simatupang, F. S., Nugraha, N. & Purnamasari, I. (2024). Analysis of the influence of financial literacy on investment decisions mediated by financial behavior: A study on students of the faculty of economics and business, Jenderal Achmad Yani University. International Journal of Research in Community Services, 5(3), 146-152. Retrieved from https://doi.org/10.46336/ijrcs.v5i3.717
75. Singh, R. (2018). Analyzing factors affecting financial literacy and its impact on investment behavior among adults in India. Retrieved from https://doi.org/10.2139/SSRN.3266655
76. Sivarajah, U., Irani, Z. & Weerakkody, V. (2020). A bibliometric analysis of financial literacy research: Mapping the field and future research agenda. Information Systems Frontiers, 22, 1243–1265. Retrieved from https://doi.org/10.1007/s10796-019-09913-9
77. Sukamdani, Y., Ardhiani, M. R., Bambang, D. W. & Istikhoroh, S. (2020). The influence of financial literacy and financial behavior on employee investment decision on PT. Angkasa Pura 1 (Persero) Juanda Surabaya. Saudi Journal of Economics and Finance, 4(6), 253-256. Retrieved from https://doi.org/10.36348/sjef.2020.v04i06.009
78. Tao, H., Zhuang, S., Xue, R., Cao, W., Tian, J. & Shan, Y. (2022). Environmental finance: An interdisciplinary review. Technological Forecasting and Social Change, 179. Retrieved from https://doi.org/10.1016/j.techfore.2022.121639
79. van Rooij, M. V., Lusardi, A. & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449–472. Retrieved from https://doi.org/10.1016/j.jfineco.2011.03.006
80. Von Gaudecker, H. M. (2015). How does household portfolio diversification vary with financial literacy and financial advice? The Journal of Finance, 70(2), 489-507.
81. Walakumbura, S. H. M. L. (2021). The effect of financial literacy on personal investment decisions amongst medical practitioners in Sri Lanka. European Journal of Business and Management Research, 6(4), 123-126.
82. Wang, S., Cao, P. & Huang, S. (2022). Household financial literacy and relative poverty: An analysis of the psychology of poverty and market participation. Frontiers in Psychology, 13, 1–19. Retrieved from https://doi.org/10.3389/FPSYG.2022.898486
83. Zaidi, A. Z., & Tahir, N. S. (2019). Factors that influence investment decision making among potential individual investors in Malaysia. Advances in Business Research International Journal, 5(1). Retrieved from https://doi.org/10.24191/abrij.v5i1.9969
84. Zaimovic, A., Torlakovic, A., Arnaut-Berilo, A., Zaimovic, T., Dedovic, L. & Meskovic, M. N. (2023). Mapping financial literacy: A systematic literature review of determinants and recent trends. Sustainability, 15(12), 1-30.
85. Zhang, Y. & Chatterjee, S. (2023). Financial well-being in the United States: The roles of financial literacy and financial stress. Sustainability, 15(5), 4505. Retrieved from https://doi.org/10.3390/su15054505
86. Zhao, T., Chen, K., Wang, Q. & Luo, C. (2023). Financial literacy, liquidity constraints and household risk asset allocation. Finance Research Letters, 58(Part C), 104555. Retrieved from https://doi.org/10.1016/j.frl.2023.104555.