Financial Literacy And Stock Market Participation PDF Download
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Author | : Maarten van Rooij |
Publisher | : |
Total Pages | : 60 |
Release | : 2007 |
Genre | : Financial literacy |
ISBN | : |
Download Financial Literacy and Stock Market Participation Book in PDF, ePub and Kindle
Individuals are increasingly put in charge of their financial security after retirement. Moreover, the supply of complex financial products has increased considerably over the years. However, we still have little or no information about whether individuals have the financial knowledge and skills to navigate this new financial environment. To better understand financial literacy and its relation to financial decision-making, we have devised two special modules for the DNB Household Survey. We have designed questions to measure numeracy and basic knowledge related to the working of inflation and interest rates, as well as questions to measure more advanced financial knowledge related to financial market instruments (stocks, bonds, and mutual funds). We evaluate the importance of financial literacy by studying its relation to the stock market: Are more financially knowledgeable individuals more likely to hold stocks? To assess the direction of causality, we make use of questions measuring financial knowledge before investing in the stock market. We find that, while the understanding of basic economic concepts related to inflation and interest rate compounding is far from perfect, it outperforms the limited knowledge of stocks and bonds, the concept of risk diversification, and the working of financial markets. We also find that the measurement of financial literacy is very sensitive to the wording of survey questions. This provides additional evidence for limited financial knowledge. Finally, we report evidence of an independent effect of financial literacy on stock market participation: Those who have low financial literacy are significantly less likely to invest in stocks.
Author | : Maarten van Rooij |
Publisher | : |
Total Pages | : 48 |
Release | : 2011 |
Genre | : |
ISBN | : |
Download Financial Literacy and Stock Market Participation Book in PDF, ePub and Kindle
Individuals are increasingly put in charge of their financial security after retirement. Moreover, the supply of complex financial products has increased considerably over the years. However, we still have little or no information about whether individuals have the financial knowledge and skills to navigate this new financial environment. To better understand financial literacy and its relation to financial decision-making, we have devised two special modules for the DNB Household Survey. We have designed questions to measure numeracy and basic knowledge related to the working of inflation and interest rates, as well as questions to measure more advanced financial knowledge related to financial market instruments (stocks, bonds, and mutual funds). We evaluate the importance of financial literacy by studying its relation to the stock market: Are more financially knowledgeable individuals more likely to hold stocks? To assess the direction of causality, we make use of questions measuring financial knowledge before investing in the stock market. We find that, while the understanding of basic economic concepts related to inflation and interest rate compounding is far from perfect, it outperforms the limited knowledge of stocks and bonds, the concept of risk diversification, and the working of financial markets. We also find that the measurement of financial literacy is very sensitive to the wording of survey questions. This provides additional evidence for limited financial knowledge. Finally, we report evidence of an independent effect of financial literacy on stock market participation: Those who have low financial literacy are significantly less likely to invest in stocks.
Author | : Olivia S. Mitchell |
Publisher | : Oxford University Press |
Total Pages | : 328 |
Release | : 2011-10-27 |
Genre | : Business & Economics |
ISBN | : 0199696810 |
Download Financial Literacy Book in PDF, ePub and Kindle
As defined contribution pensions become prevalent, retirees are increasingly responsible for managing their own pension assets and thus their own financial literacy becomes crucial. Based on empirical evidence and new research, the book examines how financial literacy enhances retirement decision-making in ever more complex financial markets.
Author | : Luigi Guiso |
Publisher | : MIT Press |
Total Pages | : 552 |
Release | : 2002 |
Genre | : Business & Economics |
ISBN | : 9780262072212 |
Download Household Portfolios Book in PDF, ePub and Kindle
Theoretical and empirical analysis of the structure of household portfolios.
Author | : Yoshihiko Kadoya |
Publisher | : |
Total Pages | : 42 |
Release | : 2017 |
Genre | : |
ISBN | : |
Download Does Financial Literacy Affect Stock Market Participation? Book in PDF, ePub and Kindle
This study examines whether financial literacy affects stock market participation. We use data from the Preference Parameter Study, a nationwide survey in Japan, made by Osaka University. Our results show that financial literacy significantly improves stock market participation even after controlling the demographic, socio-economic, and psychological factors. The influence of financial literacy on stock market participation is robust against the measurement of financial literacy, investment in risky assets, investors' risk aversion, and endogeneity issue. The results imply that lack of financial literacy is the reason behind people's reluctance in stock market participation in Japan.
Author | : OECD |
Publisher | : OECD Publishing |
Total Pages | : 100 |
Release | : 2013-10-16 |
Genre | : |
ISBN | : 9264202730 |
Download Women and Financial Education Evidence, Policy Responses and Guidance Book in PDF, ePub and Kindle
This book provides policy guidance to help policy makers address women's and girls' needs for financial education, and a comprehensive analysis of the current status of knowledge on gender differences in financial literacy and policy responses in terms of financial education for women and girls.
Author | : Karen Khachikyan |
Publisher | : |
Total Pages | : |
Release | : 2020 |
Genre | : |
ISBN | : 9783961163953 |
Download Financial Literacy and Stock Market Participation Book in PDF, ePub and Kindle
Author | : Olivia S. Mitchell |
Publisher | : University of Pennsylvania Press |
Total Pages | : 310 |
Release | : 1998-05-29 |
Genre | : Business & Economics |
ISBN | : 9780812234398 |
Download Living with Defined Contribution Pensions Book in PDF, ePub and Kindle
Table of Contents
Author | : Dmitrij Katkov |
Publisher | : |
Total Pages | : |
Release | : 2021 |
Genre | : |
ISBN | : |
Download Financial Literacy and Stock Market Participation in Sweden Book in PDF, ePub and Kindle
Author | : Ali Saeedi |
Publisher | : Springer |
Total Pages | : 165 |
Release | : 2018-05-23 |
Genre | : Business & Economics |
ISBN | : 3319778579 |
Download Financial Literacy Book in PDF, ePub and Kindle
This book provides an overview of current issues associated to financial literacy improvement. In selecting and structuring the material to include, the primary criterion has been applicability of topics and recommendations and accuracy of trends toward better financial literacy level. Each chapter is dedicated to a particular component of financial literacy from education to capability. Throughout the book, there are many practices initiated around the world which, regardless of their superiority, are all useful initiatives and can roll play as a spot light in the road of improvement for both investors and authorities. This book is not only applicable for academics and students, but authorities who aim to improve financial literacy (and subsequently financial capability) among individuals and for those investors who seek to improve their own financial literacy.