Abstract:
The lack of financial literacy may hamper the ability of households to make well-informed financial decisions as the increasing development of the financial market. While the quality financial advice can improve the households’ financial decisions. The relationship between the households’ financial literacy and the demand of financial advice is investigated in this paper using the data from “Chinese Survey of Consumer Finance and the Investor Education”. The study finds that financial advice can be complementary to households’ financial literacy, i.e. the household with high level of financial literacy is more likely to have the demand of financial advice. The paper also finds: (1) the demand for financial advice is “hump” shape related to household income and is “U” shape related to the age of head; (2) the household’s net-wealth, health status, and education levels have positive effect on the demand for financial advice; (3) compared to men, women are more likely to consult an advisor.
Atkinson, A., and F. Messy. 2012.“Measuring Financial Literacy: Results of the OECD/International Network on Financial Education (INFE) Pilot Study.” OECD Working Papers on Finance, Insurance and Private Pensions, No.15, OECD Publishing.
Atkinson, A., and F. Messy. 2012.“Measuring Financial Literacy: Results of the OECD/International Network on Financial Education (INFE) Pilot Study.” OECD Working Papers on Finance, Insurance and Private Pensions, No.15, OECD Publishing.
[10]
Bergstresser, D., J.M.R. Chalmers, and P. Tufano. 2009. “Assessing the Costs and Benefits of Brokers in the Mutual Fund Industry.” Review of Financial Studies, 22 (10): 4129~4156.
Bergstresser, D., J.M.R. Chalmers, and P. Tufano. 2009. “Assessing the Costs and Benefits of Brokers in the Mutual Fund Industry.” Review of Financial Studies, 22 (10): 4129~4156.
[11]
Bhattacharya, U., A. Hackethal, S. Kaesler, B. Loos, and S. Meyer. 2012. “Is Unbiased Financial Advice to Retail Investors Sufficient? Answers from a Large Field Study.” Review of Financial Studies, 25 (4):975~1032.
Bhattacharya, U., A. Hackethal, S. Kaesler, B. Loos, and S. Meyer. 2012. “Is Unbiased Financial Advice to Retail Investors Sufficient? Answers from a Large Field Study.” Review of Financial Studies, 25 (4):975~1032.
[12]
Bluethgen, R., A. Gintschel, A. Hacethal, and A. Mueller. 2008.“Financial Advice and Individual Investors’ Portfolios.” Working Paper Series, Social Science Research Network.
Bluethgen, R., A. Gintschel, A. Hacethal, and A. Mueller. 2008.“Financial Advice and Individual Investors’ Portfolios.” Working Paper Series, Social Science Research Network.
[13]
Bolton, P., X. Freixas, and J. Shapiro. 2007. “Conflicts of Interest, Information Provision, and Competition in the Financial Services Industry.” Journal of Financial Economics, 85 (2): 297~330.
Bolton, P., X. Freixas, and J. Shapiro. 2007. “Conflicts of Interest, Information Provision, and Competition in the Financial Services Industry.” Journal of Financial Economics, 85 (2): 297~330.
[14]
Bucher-Koenen, T., and J. Koenen. 2010. “Do Smarter Consumers Get Better Advice? An Analytical Fram-ework and Evidence from German Private Pensions.” CDSE Discussion Paper No.105, University of Mannheim.
Bucher-Koenen, T., and J. Koenen. 2010. “Do Smarter Consumers Get Better Advice? An Analytical Fram-ework and Evidence from German Private Pensions.” CDSE Discussion Paper No.105, University of Mannheim.
[15]
Calcagno, R., and C. Monticone. 2015.“Financial Literacy and the Demand for Financial Advice.” Journal ofBanking & Finance, 50: 363~380.
Calcagno, R., and C. Monticone. 2015.“Financial Literacy and the Demand for Financial Advice.” Journal ofBanking & Finance, 50: 363~380.
[16]
Campbell, J.Y. 2006.“Household Finance.” Journal of Finance, 61(4):1553~1604.
Campbell, J.Y. 2006.“Household Finance.” Journal of Finance, 61(4):1553~1604.
[17]
Collins, J.M. 2012. “Financial Advice: A Substitute for Financial Literacy?” Financial Services Review. 21(4) : 307~322.
Collins, J.M. 2012. “Financial Advice: A Substitute for Financial Literacy?” Financial Services Review. 21(4) : 307~322.
[18]
Dessein, W. 2002. “Authority and Communication in Organizations.” Review of Financial Studies, 69 (4): 811~838.
Dessein, W. 2002. “Authority and Communication in Organizations.” Review of Financial Studies, 69 (4): 811~838.
[19]
Engelmann, J.B., C.M. Capra, C. Noussair, and G.S. Berns. 2009.“Expert Financial Advice Neurobiologically Offloads Financial Decision-Making under Risk.” PLoS ONE, 4(3): 1~14.
Engelmann, J.B., C.M. Capra, C. Noussair, and G.S. Berns. 2009.“Expert Financial Advice Neurobiologically Offloads Financial Decision-Making under Risk.” PLoS ONE, 4(3): 1~14.
[20]
Haslem, J.A. 2008.“Why do Mutual Fund Investors Employ Financial Advisors?” The Journal of Investing, 17(4): 91~94.
Haslem, J.A. 2008.“Why do Mutual Fund Investors Employ Financial Advisors?” The Journal of Investing, 17(4): 91~94.
[21]
Haslem, J.A. 2010.“The New Reality of Financial Advisors and Investors.” The Journal of Investing, 19(4): 23~30.
Haslem, J.A. 2010.“The New Reality of Financial Advisors and Investors.” The Journal of Investing, 19(4): 23~30.
[22]
Hung, A.A., and J.K. Yoong. 2010. “Asking for Help: Survey and Experimental Evidence on Financial Advice and Behavior Change.” Working Paper 714-1, RAND.
Hung, A.A., and J.K. Yoong. 2010. “Asking for Help: Survey and Experimental Evidence on Financial Advice and Behavior Change.” Working Paper 714-1, RAND.
[23]
Inderst, R., and M. Ottaviani. 2009. “Misselling through Agents.” American Economic Review, 99(3): 883~908.
Inderst, R., and M. Ottaviani. 2009. “Misselling through Agents.” American Economic Review, 99(3): 883~908.
[24]
Klapper, L., A. Lusardi, and G.A. Panos. 2013. “Financial Literacy and its Consequences: Evidence from Russia during the Financial Crisis.” Journal of Banking & Finance, 37 (10): 3904~3923.
Klapper, L., A. Lusardi, and G.A. Panos. 2013. “Financial Literacy and its Consequences: Evidence from Russia during the Financial Crisis.” Journal of Banking & Finance, 37 (10): 3904~3923.
[25]
Kruger, J., and D. Dunning. 1999. “Unskilled and Unaware of It: How Difficulties in Recognizing One’s Own Incompetence Lead to Inflated Self-Assessments.” Journal of Personality and Social Psychology,77 (6): 1121~1134.
Kruger, J., and D. Dunning. 1999. “Unskilled and Unaware of It: How Difficulties in Recognizing One’s Own Incompetence Lead to Inflated Self-Assessments.” Journal of Personality and Social Psychology,77 (6): 1121~1134.
[26]
Lusardi, A., and P. Tufano. 2015.“Debt Literacy, Financial Experiences, and Overindebtedness.” Journal of Pension Economics and Finance, 14(s4): 332~368.
Lusardi, A., and P. Tufano. 2015.“Debt Literacy, Financial Experiences, and Overindebtedness.” Journal of Pension Economics and Finance, 14(s4): 332~368.
[27]
Lusardi, A., and O.S. Mitchell. 2011.“Financial Literacy around the World: An Overview.” Journal of Pension Economics and Finance, 10(4): 497~508.
Lusardi, A., and O.S. Mitchell. 2011.“Financial Literacy around the World: An Overview.” Journal of Pension Economics and Finance, 10(4): 497~508.
[28]
Mullainathan, S., M. Noeth, and A. Schoar. 2012. “The Market for Financial Advice: An Audit Study.” NBER Working Paper, No. 17929.
Mullainathan, S., M. Noeth, and A. Schoar. 2012. “The Market for Financial Advice: An Audit Study.” NBER Working Paper, No. 17929.
[29]
Shapira, Z., and I. Venezia. 2001. “Patterns of Behavior of Professionally Managed and Independent Investors.” Journal of Banking & Finance, 25 (8): 1573~1587.
Shapira, Z., and I. Venezia. 2001. “Patterns of Behavior of Professionally Managed and Independent Investors.” Journal of Banking & Finance, 25 (8): 1573~1587.
[30]
Stigler, G.J. 1961“The Economics of Information.” The Journal of Political Economy, 69(3): 213~225.
Stigler, G.J. 1961“The Economics of Information.” The Journal of Political Economy, 69(3): 213~225.
[31]
Stoughton, N.M., Y.C. Wu, and J. Zechner. 2011. “Intermediated Investment Management.” Journal of Finance, 66 (3): 947~980.
Stoughton, N.M., Y.C. Wu, and J. Zechner. 2011. “Intermediated Investment Management.” Journal of Finance, 66 (3): 947~980.
[32]
van Rooij, A. Lusardi, and R. Alessie. 2011a. “Financial Literacy and Stock Market Participation.” Journal of Financial Economics, 101 (2): 449~472.
van Rooij, A. Lusardi, and R. Alessie. 2011a. “Financial Literacy and Stock Market Participation.” Journal of Financial Economics, 101 (2): 449~472.
[33]
van Rooij, A. Lusardi, and R. Alessie. 2011b. “Financial Literacy and Retirement Planning in the Netherlands.” Journal of Economic Psychology, (32): 593~608.
van Rooij, A. Lusardi, and R. Alessie. 2011b. “Financial Literacy and Retirement Planning in the Netherlands.” Journal of Economic Psychology, (32): 593~608.
[34]
Woerheide, W., and D. Person. 1993.“An Index of Portfolio Diversification.” Financial Services Review, 2(2): 73~85.
Woerheide, W., and D. Person. 1993.“An Index of Portfolio Diversification.” Financial Services Review, 2(2): 73~85.
[35]
Xia, T., Z.W. Wang, and K.P. Li. 2014. “Financial Literacy Overconfidence and Stock Market Participation.” Social Indicators Research, (119): 1233~1245.
Xia, T., Z.W. Wang, and K.P. Li. 2014. “Financial Literacy Overconfidence and Stock Market Participation.” Social Indicators Research, (119): 1233~1245.
