Can Information Networks Influence Financial Behaviour of Female Headed Households? The Mediating Role of Financial Expertise

Abstract

Mass media and social networks play a crucial role in information distribution and are effective tools for influencing behaviours. Using a sample of female-headed households in India, we investigate the relationship between the information networks such as media and social networks on the financial returns of households. Further, we explore the mediating role of financial expertise in the relationship between information networks and financial returns of female-headed households. We find that information channels of media and social networks have a significantly positive impact on the net financial income of female-headed households in both urban and rural areas. We also confirm that this link between information networks and financial returns is mediated by financial expertise, suggesting that financial expertise among households is crucial to better understand and utilise the information provided by media and social networks in making appropriate and profitable financial decisions.

Keywords: Mass media, social networks, financial expertise, female-headed households