TTK50 312010 21254 Factors affecting learning financial investment of students in Ho Chi Minh City PDF

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BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ TPCÔNG TRÌNH DỰ THIGIẢI THƯỞNGĐỀ TÀI MÔN HỌC XUẤT SẮC UEH500 - NĂM 2021TÊN CÔNG TRÌNH: Factors affecting learning finacialinvestment of students in Ho Chi Minh CityTHUỘC KHOA: Toán-Thống kêMSĐT (Do BTC ghi): TTKTP. HỒ CHÍ MINH - 2021AbstractIntroduction:...

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BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ TP.HCM

CÔNG TRÌNH DỰ THI GIẢI THƯỞNG ĐỀ TÀI MÔN HỌC XUẤT SẮC UEH500 - NĂM 2021 TÊN CÔNG TRÌNH: Factors affecting learning finacial investment of students in Ho Chi Minh City THUỘC KHOA: Toán-Thống kê

MSĐT (Do BTC ghi): TTK50

TP. HỒ CHÍ MINH - 2021

Abstract Introduction: The research team conducted this research with the aim of discovering and measuring the factors affecting financial investment as well as delving into the importance of financial investment at a time when few people think aboutwhile sitting in the university lecture hall. This research will go into measuring the level of learning financial investment and evaluate the internal and external factors affecting the students' level of learning financial investment. The data obtained from the questionnaire were analyzed by descriptive statistics and multivariate regression analysis. The data source used in the research was collected from survey questionnaires from 360 students at universities in Ho Chi Minh City. The proposed research model is based on the model of Nguyen Thi Hai Yen 2016, Alexandra Luksander – Dániel Béres – Katalin Huzdik – Erzsébet Németh 2014, Neneng Susanti*- Rima Rahmayanti - Rizal Ramdan Padmakusumah - R. Susanto 2019, T.Bashir et al 2013. The research team used multivariate regression analysis, showing 5 factors: (1) school year, (2) majors, (3) level of interest in financial investment, (4) income, (5) future finance plan have a positive effect on the level of learning financial investment of students in Ho Chi Minh City. From there, it is possible to infer their understanding as well as the purpose of learning about investment including: expanding knowledge, profitable investment, improving field expertise. The research team offers recommendations in order to improve the level of learning financial investment of students . Based on the research results, a few implications are given to help managers have the right strategies in the context of increasingly developing investment channels in the new technological society.

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I. Background of research Financial market plays an important part in the economy. Cash flows are constantly moving, causing fluctuations between financial instruments and payments. Therefore, each individual needs to have a multi-dimensional view and understand the financial market more clearly. Financial literacy is the ability to use financial knowledge and skills to effectively manage and enhance financial resources. In order to meet the market demand in the new integration era, the need for investment is increasing considerably. Modern young people no longer focus on enjoyment but have a more intelligent and knowledgeable view. If in the past, only entrepreneurs and middle-aged people had financial investment needs, now even young people under the age of 30 or over 30 have gradually become familiar with that. It can be said that in Vietnam, investment categories are extremely variable including real estate investment, stock trading, dollar investment, gold investment , and recently, Vietnam has established a new type of bitcoin investment - a virtual currency. Understanding financial investment helps individuals and households to plan spending and thrift budgets, thereby having a certain amount of "idle" money to invest to earn more income, prevent risks and save money to plan for the future. However, besides the new viewpoint on financial investment of some people, in general, the problem of learning financial investment of Vietnamese has not been universal. For those who do not understand much about investment activities as well as have no experience in this field, investing will bring them many risks even though the high growth of money is extremely promising. For students, there is currently no research that is particularly specialized in this subject while they are the most vulnerable in financial investment. In adulthood, especially when entering a new learning environment away from home, student life is the time when each student learns to be more active in his or her own life. One of the inevitable problems of every student is financial management when they have to decide how to spend it and save it. Financial management skills when they are students relate to each individual's financial management skills later. Realizing that the problem of learning as well as understanding financial investment has not been really interesting to students in Ho Chi Minh City in the

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current situation, the research team decided to research it. When we know what factors affect the level of learning about financial investment, we can come up with solutions to improve the level of learning financial investment of students . That's why we chose the topic: Factors affecting learning financial investment of students in Ho Chi Minh City. II. Aim of research In the current era of rapid development of science and technology, people's living standards will certainly increase in the future, understanding financial investment plays an increasingly important role in the balance and prosperity of each individual in particular and the stability and development of the economy in general. For emerging economies, a citizen's understanding about financial investment can ensure that the financial sector can effectively contribute to real economic growth and poverty reduction (Faboyede et al. events, 2015). Vietnam is one of the emerging and developing countries, so the level of learning financial investment of Vietnamese is still quite low, especially students. Financial investment is still a new issue that surely future generations in particular - typically students and the whole society in general have not really understood in the most clear and true way. Beside that, there are a few programs that actually facilitate and cultivate knowledge in this field. Students tend to approach quickly and are highly influenced by new things. Moreover, universities in Ho Chi Minh City are increasingly interested in how to provide their students with a certain source of knowledge about financial investment with the hope of improving student’s lives and direct them to make effective financial investments. That is absolutely necessary in an era when the investment market is on the rise. In short, the research team carried out this research with the aim of measuring the level of learning about financial investment and evaluated the factors affecting the level of learning of students in Ho Chi Minh City. III. Research question - What group do students have ever learned financial investment belongs to?

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- The level of learning financial investment is affected by which factors? - What is the aim of learning financial investment of students ? IV. Research scale and object Research scale - Time : The research is conducted during 2 months, form June 16th, 2021 to August 6th, 2021. - Place : Ho Chi Minh City Research object: Factors affecting learning financial investment of students in Ho Chi Minh City V. Research method Data was collected through the online surveys sent to students of universities in Ho Chi Minh City. The research team used SPSS 20.0 software to analyze data through 3 steps: (1) Descriptive statistics, (2) Create representative variables by calculating means (3) Linear regression analysis. VI. The contribution of research Learning about financial investment plays an important role and can become one of the useful elements in the learning process, research and also in student's living, not only in the economic sector but also in other sectors. Recognizing this importance, the group has conducted this research which contributes to raising awareness as well as providing students with a more multifaceted view of financial investment and how to make effective financial planning for the future. Through knowledge of domestic and international financial investment channels, students can gain a deeper understanding of investment, thereby knowing how to make their own active financial and management plan. VII. Structure There are 4 chapters including:

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- Chapter 1: Theoretical basis and proposed research model - Chapter 2: The methodology - Chapter 3: Research results - Chapter 4: Conclusions and recommendations

Table of content Abstract

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I. Background of research

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II. The aim of research

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III. Research question

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IV. Research scale and object

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V. Research method

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VI.The contribution of research

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VII. Structure

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1: THEORETICAL BASIS AND PROPOSED RESEARCH MODE

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1.1. Definitions

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1.2 Related research models

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1.3 Proposed research model

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2: THE METHODOLOGY

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2.1. Research procedure design

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2.2. Preliminary research

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2.3. Quantitative research:

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2.4 Data processing

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CHAPTER 2 SUMMARY

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3: RESEARCH RESULTS

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3.1. Introduction of research sample

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3.2. Regression analysis

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CHAPTER 3 SUMMARY

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CHAPTER 4: CONCLUSIONS AND RECOMMENDATIONS

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4.1. Total results

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4.2. Discussion about result of research

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4.3. Conclusions and recommendation

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REFERENCES Domestic references International references

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APPENDICES

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Appendix 1: The content of qualitative interview

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Appendix 2: LIST OF MEMBERS PARTICIPATING IN THE INTERVIEW 48

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CHAPTER 1: THEORETICAL BASIS AND PROPOSED RESEARCH MODEL 1.1. Definitions 1.1.1 Definitions of literacy According to Czakó et al (2010), financial literacy means knowledge of financial matters and the ability to process financial information and make good financial decisions. It is arguable somewhere to draw the line for financial literacy and financial literacy skills. This line is drawn in different locations by different researchers, and as a result they often investigate very different questions using different methods. In addition, the “ U.S Government Expenditure Administration (GAO)” states that: “Financial literacy is the ability to make sound judgments and effectively use financial resources at present and future for money management.” 1.1.2 Definitions of financial investment Financial investment is understood in a simple way as using your own income and money to create money with a larger amount of money. Students often use their money to invest in stocks, bitcoin, etc to generate new income for themselves. Learning financial investment is studying or having certain knowledge related to investment, through studying documents to understand and apply to life 1.1.3 Definitions of learning financial investment According to Herawati & Dewi (2019), learning of financial investment has an additional applied aspect, which implies that one must have the ability and confidence to apply one’s financial knowledge to make a decision for yourself. There are components to measuring financial literacy: understanding the concept of money; learning the concept of debt. Especially here, we will only be interested in investment issues, in setting up current funds for future purposes, for example, saving, investing in money markets such as: stocks, securities, including pension funds. Learning about financial investment is an activity that leads to an understanding of

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financial investment through researching knowledge related to the field of financial investment, which can be found through books, research articles, websites, smart applications from which to have a basic foundation on investment, thereby raising awareness about financial investment, helping yourself and your future work. Moreover, you can also make a profit form financial investment 1.2 Related research models 1.2.1 Domestic research model: Value Financial Literacy of Vietnamese Students in Higher Education and Its Determinants – The need of Financial Education ( Nguyen Thi Hai Yen, 2016) With the use of linear regression analysis with 435 sample surveys, the research results show that 5 factors affect students’s learning of financial investment, including: (1) Gender properties, (2) Residence, (3) Group of study, (4) Years of study, (5) Work experience, (6) Income, (7) Occupation of parents and (8) Necessity of financial literacy and family dependence 1.2.2 Overseas research models: 1.2.2.1 Analysis of the Factors that Influence the Financial Literacy of Young People Studying in Higher Education (Alexandra Luksander – Dániel Béres – Katalin Huzdik – Erzsébet Németh, 2014) According to the author’s research on financial literacy of young people in Hungary for 2027 students. The study identifies six factors that affect financial literacy, including: (1) Gender, (2) Age, (3) Marital status, (4) Children, (5) Family background, (6) Occupation, (7) Income, (8) Type of training, (9) Level of education, (10) Studying abroad. 1.2.2.3 Factors Affecting Students' Financial Literation on Widyatama University, Indonesia (Neneng Susanti*, Rima Rahmayanti, Rizal Ramdan Padmakusumah, R. Susanto, 2019) This research aimed to examine the factors that influence financial literacy with variables such as gender, pocket, lifestyle, parental income and financial learning

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ability. The research model used is descriptive analysis and verification. The population of this study was University of Widytama students and sampled 122 of whom they received questionnaires. Data analysis used many linear regression. The results are showed that gender, pocket money, lifestyle, parent’s income and financial learning ability. while the test of the hypothesis of partial pocket money, lifestyle and financial education have a significant influence on financial literacy. However, parent’s gender and income did not have a significant effect on students’ financial

literac 1.2.2.4 Financial literacy and influence of psychological factors ( Bashir, T. et al, 2013) Ordinary least square regression was used to analyze the relationship of psychosocial factors with financial literacy. Research shows that the relationship of financial literacy is investigated with the following factors: demographic (age, gender, marital status, education and occupation); hopelessness, religiosity, financial satisfaction, Future finance plan, risk preference .

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1.3 Proposed research model The research team carried out a research project on the level of financial investment learning that is too new, while most research models focus only on financial literacy. Therefore, the group omitted and added variables suitable for the research object. Specifically in this study, the research team based on the two formed the basis for the proposed research model, as follows: First, the team relied on previously reviewed studies. The research team is based on 3 research models of: Nguyen Thi Hai Yen (2016), Alexandra Luksander – Danhiel Béres – Katalin Huzdik – Erzsébet Németh (2014), Neneng Susanti*, Rima Rahmayanti, Rizal Ramdan Padmakusumah, R. Susanto ( 2019), Taqadus Bashir (2013) as the basis for the research paper. Specifically, the research team proposed factors affecting financial literacy including 5 factors: Gender, School year, GPA

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score, Level of interest, Income and Majors. Specifically, Nguyen Thi Hai Yen pointed out that gender, major, and GPA were found to have a significant influence on their financial literacy at all levels. At the same time, students' financial literacy is also influenced by their year school at a fundamental level. The findings also revealed that student income was also a predictor of students' financial literacy at baseline. At the same time, seeing that the relationship of financial literacy is also related to future financial planning, people with a specific financial plan are more likely to learn about financial investments. Next, the research team through focused interview results to adjust and supplement the proposed research model. Specifically, based on the survey results, the group decided to add 3 more factors including: (1)income , (2) level of excitement. Since then, the research team has come up with a proposed model on the relationship of factors with the impact on the level of learning about financial investment, which is shown through the following model:

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1.4.1 Gender Through research papers, they point out the importance of gender for the understanding of financial investment, when they say that men have a better understanding than women like Koenen & Lusardi (2011) or In research papers such as Chen & Volpe (2002), Eitel & Martin (2009) and Goldsmith (2006),… also cannot deny the view that: male students are more financially savvy than female students. Hypothesis H1: Male gender has a positive (+) effect on the level of learning about financial investment. 1.4.2 School Year Education level in universities in HCMC can also affect understanding of financial investment, for example, 3rd and 4th year students will have better financial awareness than 1 year students. Hypothesis H2: The higher school year has a positive (+) effect on the level of learning about financial investment. 1.4.3 Major One of the factors that influence students' understanding is the major they study. There have been many research papers such as (Alessie et al., 2008; Robb & Sharpe, 2009; Almenberg and Säve-Söderbergh, 2011; Fatoki, 2014; Ning Tanga and Paula C. Peter, 2015; Chen & Volpe, 1998). ; Beal & Delpachitra, 2003) proved that students majoring in economics will have a better understanding of financial investment than students of other majors: engineering, pedagogy, medicine, etc. Hypothesis H3: Majors belonging to the group of economic sectors has a (+) impact on the level of learning about financial investment. 1.4.4 The level of interest Should the level of interest be an important factor in financial investment? This argument has been rigorously argued (Johan Sulaeman, 2008) in the research paper. If a financial investor ignores their passion for making money and making profits for

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themselves, will they learn the details and approach happily? Specifically, if an interested student has a passion for financial investment then they will learn very early about this field. Students will actively learn in an overview, learn with a positive attitude, interested in the fields of financial investment. Hypothesis H4: The level of interest in financial investment has a positive effect (+) on the level of learning about financial investment. 1.4.5 GPA In the research paper (Jariah et al., 2004), the relationship between students' education level and understanding of financial investment has been outlined in a general and rigorous way, showing that Students with higher GPA scores have better financial literacy. Through research, they also show that students with high GPA are more likely to learn financial knowledge from friends than students with low scores. Furthermore, the education level at universities in HCM city can also affect the understanding of financial investment, for example, 3rd and 4th year students will have financial awareness. better than the 1st year 2nd year students. Hypothesis H5: GPA has a positive effect (+) on the level of learning about financial investment. 1.4.6 Income (Leach et al., 1999) also stated that income is also one of the influences on financial literacy, paying more attention to family income, more specifically from parents. of students (Jarial et al., 2004) have highlighted this issue. Students from rich families, families with tens of billions of income w...