Beyond financial literacy: An analysis of behavioral determinants of equity market participation among urban working women in India

Despite the increasing educational attainment, workforce participation, and financial independence of women in emerging economies, their direct participation in equity markets remains disproportionately low. Existing research has primarily examined isolated determinants such as financial literacy or investment preferences, with limited attention to the complex interplay of behavioural, psychological, socio-cultural, and technological factors influencing investment decisions. Addressing this gap, the present study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to investigate the determinants of equity market participation among urban working women in Mumbai, India's leading financial centre. Drawing upon the Theory of Planned Behavior and Prospect Theory, the proposed conceptual framework examines the direct effects of Financial Literacy, Loss Aversion, Socio-Cultural Barriers, and Trust in Fintech on Equity Market Participation, while evaluating the mediating role of Financial Risk Tolerance. Primary data were collected from 135 working women representing diverse occupations and income groups through a structured questionnaire. The measurement model demonstrates satisfactory reliability and validity, with all constructs exhibiting acceptable Cronbach's alpha, Composite Reliability, and Average Variance Extracted values. The structural model reveals that Loss Aversion exerts the strongest negative influence on Equity Market Participation (β = –0.418, p < 0.001), whereas Financial Risk Tolerance has the strongest positive effect (β = 0.389, p < 0.001). Financial Literacy significantly enhances Financial Risk Tolerance (β = 0.342, p < 0.001), which in turn partially mediates its relationship with Equity Market Participation (β = 0.133, p < 0.001). Although Trust in Fintech positively influences Financial Risk Tolerance, its direct effect on Equity Market Participation is statistically insignificant (β = 0.112, p = 0.066), indicating that technological accessibility alone is insufficient to overcome behavioural biases associated with investment decisions. The findings underscore the dominant role of psychological and behavioural factors in shaping women's investment behaviour and suggest that financial inclusion initiatives should extend beyond improving digital access to strengthening financial capability and risk-taking confidence. The study contributes to the growing literature on gendered investment behaviour by integrating behavioural finance and technology adoption perspectives within a comprehensive structural framework and offers practical implications for policymakers, financial institutions, employers, and fintech developers seeking to promote greater equity market participation among women.