Investment in risky assets and participation in the financial market: does financial literacy matter?

Q2 Economics, Econometrics and Finance

International Review of Economics Pub Date : 2023-09-27 DOI:10.1007/s12232-023-00432-9

Andreas Oehler, Matthias Horn, Stefan Wendt

引用次数: 0

Abstract

Abstract Our study contributes to a better understanding of the relationship between financial literacy and households’ investments in risky assets. We estimate a structural equation model with data from the Panel on Household Finances of the German central bank. Our results show that although households’ net wealth is the dominant driver of investments in risky assets, financial literacy plays a remarkable role. Financial literacy has an indirectly positive influence on participation in the financial market. The higher the financial literacy, the lower is the risk aversion. The lower the risk aversion, the higher is the participation in the financial market.

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风险资产投资与金融市场参与:金融知识重要吗?

本文的研究有助于更好地理解金融素养与家庭风险资产投资之间的关系。我们用来自德国中央银行家庭财务小组的数据估计了一个结构方程模型。我们的研究结果表明，尽管家庭的净财富是风险资产投资的主要驱动因素，但金融素养也起着显著的作用。金融素养对金融市场参与有间接的积极影响。金融知识水平越高，风险厌恶程度越低。风险厌恶程度越低，金融市场参与度越高。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Economics Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

2.80

自引率

0.00%

发文量

期刊介绍： International Review of Economics - Journal of Civil Economy (IREC) covers a broad range of macro- and microeconomic topics, and showcases high-quality empirical, theoretical and policy-oriented contributions. In particular, IREC welcomes papers focused on the analysis of social interactions, wellbeing, welfare and happiness, capabilities, reciprocity, trust, relational goods, formal and informal institutions, law and economics, prizes and incentives, economics and philosophy, economic theology, the history of economic thought, non-profit organizations, and social economy. Civil Economy refers to a 18th-century Southern European tradition, which views the market as a pre-condition for civilization. Today, Civil Economy denotes a special focus on the ‘civil’ and ethical dimensions of economic issues, and on pursuing the common good in the economic domain. Officially cited as: Int Rev Econ