Attitude Toward Risk and Financial Literacy in Investment Planning

Gianni Nicolini (), Tommy Gärling, Anders Carlander and Jeanette Carlsson Hauff
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Gianni Nicolini: University of Rome “Tor Vergata”
Tommy Gärling: University of Gothenburg
Anders Carlander: University of Gothenburg
Jeanette Carlsson Hauff: University of Gothenburg

Chapter Chapter 14 in Risk Culture in Banking, 2017, pp 307-320 from Palgrave Macmillan

Abstract: Abstract Financial literacy is shown to influence investment decisions in different ways. One possible influence is that a lack of understanding of financial risk causes a negative risk attitude with the consequence for optimal investment behaviour that the positive relation between risk and return is not properly taken into account. The authors analyse data (n = 1150) collected in 2015 from three European countries (Italy, Sweden, and Spain) to test whether people with a low financial literacy have a negative risk attitude. The results confirm that survey respondents low in financial literacy on average rate their risk attitude more negative than more financial literate respondents do.

Keywords: Financial literacy; Risk attitude; Consumer finance (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-319-57592-6_14

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DOI: 10.1007/978-3-319-57592-6_14

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