Financial advice seeking and behavioral bias

Yuan-Lin Hsu

Finance Research Letters, 2022, vol. 46, issue PB

Abstract: This study explicates the role of behavioral bias in financial advice seeking. Investors with behavioral biases are prone to making poor financial decisions, which advisors may help to eradicate. Drawing on an online survey of experienced individual investors, this study examines how behavioral bias affects financial advice seeking. The three biases identified in this study influence advice seeking differently: overconfident investors tend to invest by themselves, while investors with selfprotection bias and/or mental accounting bias are more likely to seek financial advice. The pedagogical implication is to address these biases to the public in financial literacy initiatives.

Keywords: Behavioral bias; Overconfidence; Self-attribution bias; Mental accounting; Financial advice; Financial literacy (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004803

DOI: 10.1016/j.frl.2021.102505

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