Financial literacy and fraud detection——Evidence from China

Li Wei, Ming Peng and Weixing Wu

International Review of Economics & Finance, 2021, vol. 76, issue C, 478-494

Abstract: This paper investigates whether and how financial literacy could help improve fraud detection. Results demonstrate that fraud-detection ability increases with the improvement in one's financial literacy. In addition, several other variables such as one's participation in economic activities, having a healthy or risk-preferred household head, as well as active social interaction all show positive impacts on fraud detection. In contrast, some psychological factors, such as trusting strangers and regional factors like income inequality can have negative effects on it. Two potential mechanisms, the utilization of information channels and that of asset allocation channels, may help to develop this relationship.

Keywords: Financial literacy; Fraud detection; Economic activity; Psychological factor (search for similar items in EconPapers)
JEL-codes: D18 D91 G53 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S105905602100143X
Full text for ScienceDirect subscribers only

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:eee:reveco:v:76:y:2021:i:c:p:478-494

DOI: 10.1016/j.iref.2021.06.017

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().