Keyword

Financial Behavior, Aramco's IPO, Financial Literacy, Financial Self-efficacy, Patriotism, Environmental Concerns.

Abstract

This study investigates the main reasons behind the purchase of Aramco shares. It examines whether the following financial variables: financial literacy, financial self-efficacy, financial behavior and financial perceived value influence the attitude towards Saudi Aramco's IPO. Other variables dealing with environmental concerns and patriotism perception were added to this analysis, making it one of the pioneer studies in this field. A primary data collection through a survey questionnaire and structural equation modeling (SPSS-AMOS-26) were followed to study our research hypotheses. Our findings highlight a significant relationship between patriotism level, environmental concerns and attitude towards Saudi Aramco's IPO, which may encourage financial institutions to slot this investors’ psychosocial side in their marketing strategy, making environment sustainability a part of their corporate identity. Our study will also open the way for further investigation on the role played by these variables on financial decision making and to what extend a financial organization can use them to enhance its performance and gain investors’ attention. 

 


Full Text : PDF

References
  • Arianti, B. F. (2018). The influence of financial literacy, financial behavior, and income on Investment decision. Economics and Accounting Journal, 1(1):1-10.
  • Arifin, A Z.  (2017). The influence of Financial knowledge, Control, and income on individual financial behavior. European Research Studies Journal, 20(3): 635-648.
  • Akehurst, G., Afonso, C. & Martins Gonçalves, H. (2012). Re-examining green purchase behavior and the green consumer profile: New evidences. Management Decision, 50(5):972-988.
  • Bandura, A. (1977). Self-efficacy: Towards a Unifying Theory of Behavioral change. Psychological Review, 84(2):191-215.
  • Bandura, A. (1993). Perceived Self-Efficacy in cognitive development and functioning. Educational Psychologist, 28(2):117-148.
  • Batra, R. & Ahtola, O.T. (1991). Measuring the Hedonic and Utilitarian Sources of Consumer Attitudes. Marketing Letters 2, 159-170.
  • Benos, E.  & Jochec, M.  (2013). Patriotic name bias and stock returns. Journal of Financial Markets 16(3):550-570.
  • Bergner, R. M. (2011). What is behavior? And so, what? New Ideas in Psychology, 29(2):147-155.
  • De Bassa, S. C. (2013). Financial Literacy and Financial Behavior among Young Adults: Evidence and Implications. Numeracy - Advanced Education in Quantitative literacy, 6(2).
  • Eberhardt, W., de Bruin, W. B. & Strough, J. (2018). Age differences in financial decision making: The benefits of more experience and less negative emotions. Journal of behavioral decision making, 32(1):79-93.
  • Edirisinghe, U. C., Keerthipala, Y. M. S. & Amarasinghe, A. R. (2017 ). Financial Literacy and Financial Behavior of Management Undergraduates of Sri Lanka. International Journal of Management and Applied Science (IJMAS), 3(7): 1-5.
  • ElHaffar, G., Durif, F. & Dubé, L. (2020). Towards closing the attitude-intention-behavior gap in green consumption: a narrative review of the literature and an overview of future research directions. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2020.122556                    
  • Farrell, L., Fry, T. R. L. & Risse, L. (2016). The significance of financial self-efficacy in explaining women’s personal finance behavior. Journal of Economic Psychology 54: 85–99
  • Fraj, E. & Martinez, E. (2006). "Environmental values and lifestyles as determining factors of ecological consumer behaviour: an empirical analysis". Journal of Consumer Marketing, 23(3):133-14.
  • Grable, J. E. & Rabbani, A. (2020). Are Americans financially illiterate? Journal of Financial Service Professionals, 74(1):11-14.
  • Grohmann, A. (2018). Financial Literacy and financial behavior: Evidence from the emerging Asian middle class. Pacific-Basin Finance Journal, 48(1):129-143.
  • Gross, S. (2019, December 11). The Saudi Aramco IPO breaks records but falls short of expectations. Retrieved from the Brookings Institution website:   https://www.brookings.edu/blog/order-from-chaos/2019/12/11/the-saudi-aramco-ipo-breaks-records-but-falls-short-of-expectations/ 
  • Herawati, N. T., Candiasa, I. M., Yadnyana, I. K. & Suharsono, N. (2018). Factors that influence Financial Behavior among Accounting students in Bali. International journal of Business Administration, 9(3):30-38.
  • Jiang, P. & Rosenbloom, B. (2005). Customer intention to return online: price perception, attribute-level performance, and satisfaction unfolding over time. European Journal of Marketing, 39(1/2): 150-174.
  • Karjaluoto, H., Shaikh, A. A., Saarijärvi, H. & Saraniemi, S. (2018). How perceived value drives the use of mobile financial services apps. International Journal of Information Management, 47:252-261. 
  • Kim, E. & Tang, L. (2020). The role of customer behavior in forming perceived value at restaurants: A multidimensional approach. International Journal of Hospitality Management, 87, 102511.
  • Kumar, S., Watung, C., Eunike, J. & Liunata, L. (2017). The Influence of Financial Literacy Towards Financial Behavior and its Implication on Financial Decisions: A survey of President University Students in Cikarang - Bekasi. Firm Journal of management Studies, 2(1):14-23.
  • Lown, J. (2011). Development and Validation of a Financial Self-Efficacy Scale. Journal of Financial Counseling and Planning, 22(2):54-63.
  • Loewenstein, G. (2000). Emotions in economic theory and economic behavior. The American Economic Review, 90(2), 426-432
  • Mainardes, E. W., Yeh, T. & Leal, A. (2017). Consumers’ evaluations of the efficiency of actions to improve environmental quality: A comparative study between Brazil and China. International Journal of Consumer Studies, 41: 659– 670. 
  • Mudzingiri, C., Mwamba, J. W. M. & Keyser, J. N. (2018). Financial behavior, confidence, risk preferences and financial literacy of university students. Cogent Economics & Finance, 6(1):1512366
  • Petersen, J. A., Kushwaha, T. & Kumar, V. (2015). Marketing communication strategies and consumer financial decision making: the role of national culture. Journal of marketing, 79 (1):44-63.
  • Plotz, P., Schneider, U., Globisch, J. & Dutschke, E. (2014). Who will buy electric vehicles? Identifying early adopters in Germany. Transportation Research Part A: Policy and Practice, 67:96-109.
  • Primoratz, I. (2009) “Patriotism”. Retrieved from Stanford Encyclopedia of Philosophy Archive website: https://plato.stanford.edu/archives/spr2019/entries/patriotism
  • Rezaei, S. (2015). Segmentation consumer decision-making styles (CDMS) toward marketing practice: A partial least squares (PLS) path modeling approach. Journal of Retailing and Consumer Services 22(1):1-15.
  • Robert, A. N. & Obenberger, R. W. (2018). Factors influencing individual investor behavior. Financial Analysts Journal, 50(4): 63-86.
  • Rooij, V. M., Annamaria, L. & Rob, A. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2):449-472.
  • Sheth, J., Newman, B. & Gross, B. (1991). Why We Buy What We Buy: A Theory of Consumption Values. Journal of Business Research, 22:159-170.
  • Sweeney, J. & Soutar, G. (2001). Consumer Perceived Value: The Development of a Multiple Item Scale. Journal of Retailing, 77: 203-220.
  • Theiss-Morse, E., Fried, A., Sullivan, J. & Dietz, M. (1991). Mixing Methods: A Multistage Strategy for Studying Patriotism and Citizen Participation. Political Analysis 3: 89-121.
  • Tokar, A. (2017). Fiancial literacy and Fiaincial behavior: Assessing knowledge and confidence. Financial Services Review, 24(2):101-117.
  • Torben, H. (2005). Perspectives on consumer decision making: an integrated approach. Journal of Consumer behavior,4(6): 420-437.
  • Wel, C. A. C., Alam, S. S., Khalid, N. R. & Mokhtaruddin, S. A. (2018). Effect of Ethnocentrism and Patriotism on the buying intention of Malaysian National Car. UKM Journal of Management (Journal Pengurusan), 52 (14):169-179.
  • Zabkar, V. & Hosta, M. (2012). Willingness to act and environmentally conscious consumer behavior: can prosocial status perceptions help overcome the gap? International journal of Consumer Studies, 37(3):257-264