Financial literacy and risky asset holdings: evidence from China

Document Type

Article

Date of Original Version

12-1-2017

Abstract

Although financial literacy is important for participating in financial markets, the level of financial literacy of Chinese consumers is low compared with those in developed countries. Using data from the 2014 China Survey of Consumer Finances, we examine the relation between financial literacy and the risky asset holding behaviour of Chinese households, in the context of an emerging financial market with a distinct institutional background. The findings reveal that consumers with higher levels of financial literacy are more likely to hold risky financial assets than those with lower levels. The potential impacts are derived mainly from advanced financial literacy.

Publication Title, e.g., Journal

Accounting and Finance

Volume

57

Issue

5

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