Financial Literacy and Financial Behavior: Evidence from the Emerging Asian Middle Class

Grohmann, Antonia

doi:10.2139/ssrn.3084021

Cited by 46 publications

(69 citation statements)

References 44 publications

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“…Again, it follows the ambiguity of the existing evidence. The general notion suggests that higher financial literacy improves economic behavior [103][104][105][106]. Some of the existing empirical evidence [70,107,108], however, show only small effects of financial literacy on economic preferences.…”

Section: Discussionmentioning

confidence: 99%

The effect of economic situation on time and risk preferences: Does financial literacy matter?

Adamkovič¹,

Martončik²,

Ropovik³

2018

Preprint

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Socioeconomic status is considered to have an effect on one`s economic decision-making, inducing more myopic preferences in poor people. The relationship, however, might not be that straightforward, as economic decision-making should be also determined by financial literacy. Employing a pre-registered cross-validation procedure, we tested a structural model outlining a causal mechanism of relationships between poverty, its perception, financial literacy, and economic decision-making in terms of time-discounting and risk preferences. Even after respecifying the model in the exploratory dataset, the confirmatory analyses showed mostly weak or inconclusive relationships, suggesting that time-discounting and risk preferences are rather stable traits, almost independent of one`s long-term economic situation, its perception, and financial literacy. The results suggest that financial literacy seems not to be on a causal pathway linking economic situation and economic preferences.

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Section: Discussionmentioning

confidence: 99%

The effect of economic situation on time and risk preferences: Does financial literacy matter?

Adamkovič¹,

Martončik²,

Ropovik³

2018

Preprint

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“…Financial literacy explains a wide of these saving as well as some borrowing decision (Grohmann, 2018). Financially literate individuals make better use of advanced financial product.…”

Section: Hypothesis Development Relationship Between Financial Literamentioning

confidence: 99%

The Effect of Financial Literacy and Financial Experience on SME Financial Behavior in Indonesia

Purwidianti

Tubastuvi

2019

JDM

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The aim of this study is to examine the effect of financial literacy and financial experience on SMEs financial behavior in Indonesia.The dependent variable is financial behavior while independent variables are financial literacy and financial experience. There are four control variables used, namely company size, business length, age and education level of SME owner. The respondent sample is 42 owners of SMEs in Purwokerto Selatan. This study used multiple regression analysis. The results showed that financial literacy has no effect on financial behavior. Financial experience has a positive effect on financial behavior. While among four control variables, only company size has a significant negative effect on financial behavior. Three control variables have no significant effect on financial behavior. The implication of this study, SME owners have good financial experience will increase financial behavior. Therefore, it is very important to improve the financial experience of SME owners

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“…Prior studies have found that financial literacy has a direct effect on the amassment of wealth (Van Rooji, Annamaria, & Rob, 2012;Behrman, Mitchell, Soo , & Bravo, 2010), retirement planning (Lusardi & Mitchell, 2006;Van Rooji, Annamaria, & Rob, 2012), participation in the stock market (van Rooji, Lusardi, & Alessie, 2007) and saving behavior (Klapper, Annamaria, & Panos, 2013). However, Grohmann (2018) finds that levels of financial literacy do not have much effect on investment behavior among the middle class in Thailand. This led the researcher to conduct a multivariate analysis to check if financial literacy has an impact on investment behavior among people in India.…”

Section: Effect Of Financial Literacy On Investment Behaviormentioning

confidence: 92%

Analyzing Factors Affecting Financial Literacy and Its Impact on Investment Behavior Among Adults in India

Singh

2018

SSRN Journal

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Financial literacy is essential for making key financial decisions related to saving, borrowing and investment. Although numerable studies have been conducted to find elements of financial literacy, most of them focus on developed countries. This study aims to determine characteristics that affect levels of financial literacy in India and the impact of financial literacy on investment behavior. Primary data from 309 respondents across India was collected for the purpose of the study and was analyzed using empirical methods such as ordinary least square (OLS) regression and t-test. It was found that financial literacy among respondents was low and significant differences existed based on sociodemographic and economic factors. Unexpectedly, financial literacy was found to have no effect on investment behavior. To the best of the authors' knowledge, this study is among the first, if not the first, of its kind to be conducted in India. The findings have significant implications for financial education and public policy programs.

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Financial Literacy and Financial Behavior: Evidence from the Emerging Asian Middle Class

Cited by 46 publications

References 44 publications

The effect of economic situation on time and risk preferences: Does financial literacy matter?

The effect of economic situation on time and risk preferences: Does financial literacy matter?

The Effect of Financial Literacy and Financial Experience on SME Financial Behavior in Indonesia

Analyzing Factors Affecting Financial Literacy and Its Impact on Investment Behavior Among Adults in India

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