This study focused on testing the mediation effect of Investment Domain Knowledge of individual investors(IDK) on the relationship of Enduring Investment Importance for Financial Well-being (EIIFWB) and Acceptance of Equity Instruments (AES) [two dimensions of Investment Importance Perception on equity instruments of investors (IIPe)] respectively predicting Correctness of Judgment (Krishnan Rakesh and Ganesh 2015) on equity calls by the individual investors (CJe). The full model is tested with a sample size of 496. The responses were collected in interval scale using the questionnaire developed for the purpose in this study. The reliability and validity of the questionnaire was tested using appropriate tools before testing the final model. The indirect effect of EIIFWA getting mediated through IDK in predicting CJe is found statistically significant (p<.05). The Sobel Test result also indicate that the indirect effect of EIIFWB through IDK in predicting CJe is significant (p<.05). The independent variable (EIFFWB) has no significant direct predicting power for the dependent variable (CJe) in the presence of the mediating variable (IDK), and thus the perfect mediation model can be accepted. The indirect effect of AES getting mediated through IDK in predicting CJe is also found statistically significant (p<.05). The Sobel Test result also indicate that the indirect effect of AES through IDK in predicting CJe is significant (p<.05). The independent variable (AES) has no significant direct predicting power for the dependent variable (CJe) in the presence of the mediating variable (IDK), and thus the perfect mediation model was accepted.
Individual Investor, Investment Domain Knowledge, Investment Importance Perception, Enduring Importance
