Disparities in Financial Literacy, Pension Planning, and Saving Behavior

Misperceived Returns to Active Investing

“…Our findings contribute to several strands of the literature. First, we contribute to the finance literature on why retail investors tend to invest in actively managed funds (Bucher-Koenen et al, 2021;Choi and Robertson, 2020;French, 2008;Glode, 2011;Guercio and Reuter, 2014;Savov, 2014). Several studies show that biased advice can contribute to misperceptions about the returns to active investing.…”

Culture, Preferences, and the Gender Gap in Financial Literacy

“…What is the role of culture and cultural preferences as opposed to institutional or economic constraints in explaining the gender gap in financial literacy? If institutions matter, women may choose to invest less in financial literacy than men because they expect lower returns to their financial knowledge given the higher legal and regulatory barriers they face relative to men (Brush et al 2004;Klapper & Parker 2010;Asiedu et al 2013;Driva & Winter 2016), or because they are systematically discriminated by financial institutions (Alesina et al 2013;Niessen-Ruenzi & Ruenzi 2018;Brock & de Haas 2019;Bhattacharya et al 2020;Bucher-Koenen et al 2020). Alternatively, if culture regarding financial matters is most relevant, women's lower financial knowledge may result from internalizing what constitutes being a woman and behaving according to a woman's gender identity (Akerlof and Kranton 2000) regarding financial matters, which may affect a woman's beliefs of her own financial abilities ("women are not good with money" or "women are not good with financial investments")- Chen & Volpe 2002) or her (lack of) preferences for financial interests ("as I am a woman, I am not motivated by money" or "as I am a woman, I do not care about money") or her confidence and willingness to engage in tasks that are outside of a genderspecific domain (Coffman 2014).…”

Sustainable investment preferences and how they are delegated

“…https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52018DC0097&from=EN 2 In Europe,Bucher-Koenen et al (2021) show that financial advisors engage in price discrimination by selectively offering discretionary rebates on upfront loads. In the US,Badoer et al (2020) highlight how 12b-1 fees that serve as commissions paid to financial advisors for selling a fund's shares can result in price discrimination.…”