Studying the risk-taking of financial market investors and its relationship with financial literacy
Аннотация
This study tried to investigate the association between financial literacy and investors’ risk-taking behavior in the capital market of Uzbekistan. This study was a descriptive-correlational one, and data collection was done through a standardized questionnaire from 450 active investors during 2024-2025. The results of this study indicated that the association between financial literacy and risk-taking is positive and significant. Multivariate regression analysis also confirmed financial literacy as the strongest predictor of the risk-taking behavior. Specifically, whereas investors with higher financial literacy were not risk-averse, they tended towards more profitable opportunities, having a deeper understanding of the market. Segment-level results show that the high-risk (aggressive) group reported the highest mean return (12.3%), whereas the sample-wide mean annual return was 9.4%. The results stress the importance of developing sophisticated financial education programs in order to enhance informed decision-making by active investors.