Confidence in Financial Literacy, Stock Market Participation, and Retirement Planning

Tsung ming Yeh, Yue Ling

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)


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.

Original languageEnglish
Pages (from-to)169-186
Number of pages18
JournalJournal of Family and Economic Issues
Issue number1
Publication statusPublished - Mar 2022

All Science Journal Classification (ASJC) codes

  • Social Psychology
  • Economics and Econometrics


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