Effect of Investment Knowledge on Investment Decision amid COVID-19 Pandemic: The Moderating Role of Financial Risk Tolerance

This study assesses the moderating influence of financial risk tolerance on the nexus between investment knowledge and investment decisions amid the coronavirus pandemic. The study employed a closed-ended questionnaire through online survey as its data collection framework. Data collection took place from July 2022 to May 2023, and the analysis was conducted utilising the R version of partial least squares structural equation modelling (PLS-SEM). The findings of the study revealed a moderate nexus between investment knowledge and investment decisions. Additionally, it was discovered that financial risk tolerance exhibits a negative moderating effect on this association, particularly in times of crisis. Generally, a significant relationship was established among the dependent, moderating, and response variables. As part of the policy recommendations, this study posits that Ghanaian investors possess a moderate level of investment knowledge. Hence, to mitigate the potential turmoil caused by fraudulent schemes, it is imperative to implement policies that enhance the investment knowledge and inclination of investors in Ghana through educational initiatives such as public lectures, conferences, and workshops, which will further enhance their financial risk tolerance. These recommendations remain pertinent despite the efforts undertaken by numerous financial institutions to improve and adapt their products and policies to cultivate investor risk tolerance, especially after the recent financial sector clean-up. These assertions further remain relevant, especially in periods of upheaval characterised by the global health crisis.