Investigating Gen Z's equity investment intentions through a novel integrated psychological framework: An empirical validation

The financial landscape is dynamic and has shifted; the involvement of Generation Z (Gen Z) in investment has kindled several studies. Earlier studies utilised the Theory of Planned Behavior to assess investment behavior; however, it has yet to consider the driving components that shape such investment decisions. Thus, this study aimed at integrating the theory of basic psychological needs with the theory of planned behavior, particularly in the context of Generation Z equity investment intentions. This posits that those basic psychological needs, mainly need satisfaction and frustration (autonomy, competence, and relatedness), shape equity investment intentions through attitude, subjective norms, financial self-efficacy. To empirically validate this complex structural model, we utilised PLS-SEM on responses collected from MBA students from NIRF-ranked institutions in India. The findings suggest that need satisfaction is more relevant than need frustration in predictors of planned behavior (i.e., attitude and subjective norms). However, only attitude significantly mediates the relationship between need satisfaction and equity investment intention. This research has implications for marketers, by identifying intrinsic motivation factors for Gen Z members to increase participation in the market. Another contribution lies in that it provides theoretical integration between two major psychological and behavioral frameworks, hence contributing to the enhancement of current research. Bringing together these two leading psychological frameworks yields valuable insights into the process of financial decision-making. This work proposes an original theoretical framework that reveals the underlying determinants of intention to invest.