Financial Literacy and Investment Behaviour: A Comparative Study among MBA Students and Salaried Professionals

Abstract: This comparative descriptive study investigates how financial literacy influences investment behaviour among MBA students (n = 75) and salaried employees (n = 75) in Nagapattinam. Primary data were collected using a structured questionnaire (5-point Likert scale) and analyzed through regression, chi-square, and independent samples t-tests. Instrument reliability was confirmed (Cronbach’s α = 0.859). Regression analysis shows that financial literacy significantly predicts investment behaviour (R² = 0.376, β = 0.597, p < .001), explaining 37.6% of variance. Chi-square results indicate no significant association between respondent category and overall risk tolerance (χ²(4) = 2.782, p = .595). Independent t-tests revealed some item-level differences, but no consistent overall advantage between MBA students and salaried employees. After Holm–Bonferroni adjustment, significant differences remained in budgeting knowledge, investment frequency, reliance on professional advice, and portfolio rebalancing, with small-to-moderate effect sizes. The findings highlight implications for MBA curricula and workplace financial education programs, recommending targeted practical training to help convert financial awareness into effective investment action.

Keywords: Investment behaviour, Digital financial literacy, Risk tolerance, Comparative study