Exploring the Interplay of Life Attitude and Cognitive Ability in Shaping the Intention to Stock Market Participation Among Young Professionals in the Philippines

The stability of life purpose and coherence as dimensions of life attitude shapes the cognitive structures underpinning financial decision-making. This study examines how cognitive ability mediates the effect of life attitude profile on the intention to stock-market participation of 195 randomly selected young professionals in the Philippines. This study adopted a quantitative, cross-sectional framework, employing Partial least squares–Structural Equation Modeling to evaluate both predictive and mediating influence. The findings revealed that individuals with stronger life purpose, greater goal-seeking tendencies, and an overall positive outlook toward life exhibit a higher propensity to participate in stock market investments. Cognitive ability, proxied by financial literacy, emerged as a crucial mechanism that reinforces this relationship—suggesting that psychological readiness alone is not sufficient unless complemented by the knowledge and capacity to make informed financial decisions. This study contributes to the intersection of psychology and finance by demonstrating that investment intentions are not solely products of rational calculation but are shaped by the individual’s sense of meaning, life orientation, and cognitive preparedness.