Investor self-selection: evidence from a mutual fund survey

Gordon Alexander, Jonathan D. Jones and Peter Nigro
Additional contact information
Jonathan D. Jones: Risk Management Division, Office of Thrift Supervision, Washington, DC 20552, USA, Postal: Risk Management Division, Office of Thrift Supervision, Washington, DC 20552, USA

Managerial and Decision Economics, 1997, vol. 18, issue 7-8, 719-729

Abstract: Using survey data on a random sample of 2000 mutual fund investors, we classify investors by their level of financial literacy and their place of mutual fund purchase. After using a probit model to separately estimate the determinants of an investor's choice of distribution channel and level of financial literacy, a bivariate probit model that jointly endogenizes an investor's level of financial literacy and choice of distribution channel is estimated. Strong evidence that an investor's level of financial literacy and choice of distribution channel are jointly determined is found. Thus, the hypothesis put forth in this paper, that investors self-select into different distribution channels based on their overall level of financial literacy, is supported by the data. © 1997 John Wiley & Sons, Ltd.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:18:y:1997:i:7-8:p:719-729

DOI: 10.1002/(SICI)1099-1468(199711/12)18:7/8<719::AID-MDE859>3.0.CO;2-A

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().