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Knowing is trusting? An experimental test of the role of information in advisory

Caterina Cruciani (), Gloria Gardenal () and Anna Moretti ()

No 2, Working Papers from Department of Management, Università Ca' Foscari Venezia

Abstract: The recent economic crisis still lingering in Europe has deeply affected the way individuals look at the investment market. Understanding the trust processes underlying the decision to invest with financial intermediaries is of particular importance both at managerial (product development and advertisement) and at normative level (how intermediaries are regulated). Using an online experiment, this paper investigates whether discrepancies in the financial literacy of investors and brokers can be used to explain the decision to trust, thus, to invest in the financial market. The results show that trust is affected by the information disclosure in somewhat unexpected ways.

Keywords: financial market; financial literacy; trust; advisory (search for similar items in EconPapers)
JEL-codes: D12 D8 D91 G11 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2015-06
New Economics Papers: this item is included in nep-exp and nep-soc
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