TY - JOUR
T1 - Confidence in Financial Literacy, Stock Market Participation, and Retirement Planning
AU - Yeh, Tsung ming
AU - Ling, Yue
N1 - Funding Information:
The corresponding author acknowledges financial support from JSPS KAKENHI (JP17K03807) and Nomura Foundation Social Science Research Grant.
Funding Information:
The authors are grateful to the referees and the editor for their valuable comments. We also appreciate the comments from Prof. Konari Uchida and participants at the research seminar in Kyushu University in 2019. We would also like to thank Editage for English language editing.
Publisher Copyright:
© 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.
PY - 2022/3
Y1 - 2022/3
N2 - This study investigated whether overconfidence with respect to one’s financial literacy affects stock market participation and retirement preparation and if so, how. Using an effective sample of 12,653 Japanese individuals, the empirical results confirm that financial literacy plays a positive role, while confidence in financial literacy also matters. For people with relatively low financial literacy, overconfidence can encourage taking financial action, while for people with high financial literacy, underconfidence can deter action. Confidence could have an effect equal to or greater than financial literacy. Moreover, it was also found that the positive effect of overconfidence is weaker for women than for men.
AB - This study investigated whether overconfidence with respect to one’s financial literacy affects stock market participation and retirement preparation and if so, how. Using an effective sample of 12,653 Japanese individuals, the empirical results confirm that financial literacy plays a positive role, while confidence in financial literacy also matters. For people with relatively low financial literacy, overconfidence can encourage taking financial action, while for people with high financial literacy, underconfidence can deter action. Confidence could have an effect equal to or greater than financial literacy. Moreover, it was also found that the positive effect of overconfidence is weaker for women than for men.
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U2 - 10.1007/s10834-021-09769-1
DO - 10.1007/s10834-021-09769-1
M3 - Article
AN - SCOPUS:85105320027
SN - 1058-0476
VL - 43
SP - 169
EP - 186
JO - Journal of Family and Economic Issues
JF - Journal of Family and Economic Issues
IS - 1
ER -