Financial Literacy, Financial Advice, and Stock Market Participation: Evidence From Malaysia

Hii, Ivy S.H.; Ho, Poh Ling; Yap, Ching Seng; Philip, Abey P.

doi:10.1891/jfcp-2021-0011

Cited by 7 publications

(3 citation statements)

References 24 publications

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“…The benefits of financial advice cannot be overemphasized given the widespread nature of financial illiteracy among the populace (Lusardi & Mitchelli, 2007) and the possibility of making costly financial decisions (Tokar Asaad, 2015). Prior studies have shown that financial advice is associated with financial behaviors, such as retirement savings, emergency savings, financial asset investments, cash flow management, life insurance, and goal setting and attainment (Alyousif & Kalenkoski, 2017;Finke et al, 2009;Hii et al, 2022;Hudson & Palmer, 2014;Kim et al, 2018;Marsden et al, 2011;Moreland, 2018). Kim et al (2018) examined the relationship between financial advice and retirement savings behavior.…”

Section: Financial Advice and Financial Behaviormentioning

confidence: 99%

Financial Advice Use and Saving for Children’s College Education: A Propensity Score Matching Approach

Korankye¹,

Pearson²,

Salehi³

2023

Journal of Financial Counseling and Planning

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This study examines the effects of financial advice on college-saving decisions using data sets from the 2009 and 2012 U.S. National Financial Capability Study. After controlling for self-selection bias through propensity score matching, the findings show that receiving financial advice is associated positively with the likelihood of saving for children’s college education. Other findings reveal that seeking specific types of financial advice relating to savings/investment, insurance, and tax planning is positively associated with a household’s decision to allocate money for their children’s postsecondary education. The ensuing discussion highlights that policies incentivizing households to seek financial advice could promote college savings and contribute to reduction in student loan dependence.

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Section: Financial Advice and Financial Behaviormentioning

confidence: 99%

Financial Advice Use and Saving for Children’s College Education: A Propensity Score Matching Approach

Korankye¹,

Pearson²,

Salehi³

2023

Journal of Financial Counseling and Planning

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“…This is shown by poor levels of financial literacy across nations, which are linked to inefficient spending and financial planning, as well as costly borrowing (Lusardi, 2019). Financial fragility and a lack of understanding of the underlying linkages between literacy, education, and behavior have been cited as major contributors to this problem (Centeno, 2022; Hii et al, 2022; Hung et al, 2009).…”

Section: Limitations Of Studymentioning

confidence: 99%

Leading Generation Z’s Financial Literacy Through Financial Education: Contemporary Bibliometric and Content Analysis in China

Hong Shan,

Cheah,

Leong

2023

Sage Open

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There is a growing awareness of the importance of financial education and literacy in personal economic success, yet not many Generation Z are proficient in this area. The lack of understanding can lead to consequences such as not recognizing the need for greater retirement savings, making poor spending decisions, or when overpaying off high-interest debt. In addition, many of the studies on financial education and literacy among Generation Z remain untapped in the context of China. As a result, the researcher emphasizes the evidence by mining data from the Web of Science database and analyzing the data using bibliometrics and content analysis. Contemporary research on financial education and literacy in the web of science has discovered that it is trending strongly across fields like environmental science, healthcare, energy, and economics, according to bibliometric data. Further investigation has uncovered the important writers, journal sources, and universities in China that are creating such knowledge. Subsequently, the content analysis on the focused area has yielded results related to recent findings from key authors, and how their studies describe the socio-demographic and psychological behavior of Generation Zs. As an implication, China’s academic research reveals that Generation Zs’ subjective and objective financial education may be absorbed into their financial self-beliefs, which affects how they handle their finances. Thus, financial education is instrumental to help them set clear financial goals and plan for the future.

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“…Researchers have been interested in a number of individual difference variables and SMP, as well as which variables best predict success in terms of money made (Conlin & Miettunen, 2017; Conlin et al, 2015; Firth et al, 2023; Grinblatt et al, 2010; Hii et al, 2022). These include sex, age, education, intelligence, and financial literacy.…”

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confidence: 99%

Correlates of stock market investment.

Furnham,

Cuppello,

Fenton-O'Creevy

2024

Journal of Neuroscience, Psychology, and Economics

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In this study, we were concerned with the correlates of stock market (SM) participation. In all, 1,202 working adults indicated whether or not they invested in the stock market, and which was split almost equally between those that did and did not. We were interested in the extent to which their demography (age, sex, education), self-assessed wealth, as well as personality traits predicted their participation. We used a six-factor robust measure of work personality (High Potential Trait Indicator). Correlational analysis indicated that the strongest correlation of stock market participation were wealth, sex, age, and trait Risk Tolerance. We then did a binary logistic regression which indicated that being male increased the odds of having invested in the stock market by 91%, and an increase of 1 year in age increased the odds by 3%. Ambiguity Acceptance and trait Competitiveness were among the High Potential Trait Indicator personality variables that were significant predictors of stock market investment. Implications and limitations are acknowledged.

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Financial Literacy, Financial Advice, and Stock Market Participation: Evidence From Malaysia

Cited by 7 publications

References 24 publications

Financial Advice Use and Saving for Children’s College Education: A Propensity Score Matching Approach

Financial Advice Use and Saving for Children’s College Education: A Propensity Score Matching Approach

Leading Generation Z’s Financial Literacy Through Financial Education: Contemporary Bibliometric and Content Analysis in China

Correlates of stock market investment.

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