scholarly journals Financial knowledge and 401(k) investment performance: a case study

2015 ◽  
Vol 16 (3) ◽  
pp. 324-347 ◽  
Author(s):  
ROBERT CLARK ◽  
ANNAMARIA LUSARDI ◽  
OLIVIA S. MITCHELL
Keyword(s):  
Financial Literacy ◽  
Sample Selection ◽  
Financial Knowledge ◽  
Literacy Intervention ◽  
Excess Returns ◽  
Investment Performance ◽  
Significant Difference ◽  
Literacy Survey ◽  
Potential Impact

AbstractWe explore whether investors who are more financially knowledgeable earn more on their retirement plan investments compared with their less sophisticated counterparts, using a unique new dataset linking administrative data on investment performance and financial knowledge. Results show that the most financially knowledgeable investors: (a) held 18% points more stock than their least knowledgeable counterparts; (b) could anticipate earning 8 basis points per month more in excess returns; (c) had 40% higher portfolio volatility; and (d) held portfolios with about 38% less idiosyncratic risk, as compared with their least savvy counterparts. Our results are qualitatively similar after controlling on observables as well as modeling sample selection. We also examine portfolio changes to assess the potential impact of the financial literacy intervention. Controlling on other factors, those who elected to take the financial literacy survey boosted their equity allocations by 66 basis points and their monthly expected excess returns rose by 2.3 basis points; no significant difference in volatility or non-systematic risk was detected before versus after the survey. While these findings relate to only one firm, we anticipate that they may spur other efforts to enhance financial knowledge in the workplace.

scholarly journals Some Insights Into Financial Literacy Among Undergraduate Students: A Case of Bosnia and Herzegovina

2021 ◽  
Vol 12 (3) ◽  
pp. 103
Author(s):  
Jasmina Okicic ◽  
Meldina Kokorovic Jukan ◽  
Mensur Heric
Keyword(s):  
Undergraduate Students ◽  
Financial Literacy ◽  
Sampling Technique ◽  
Financial Education ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Financial Attitudes ◽  
Significant Difference ◽  
Financial Behaviour ◽  
The Relationship

The purpose of this research is to provide some insights into financial literacy among undergraduate students focusing primarily on the relationship between financial knowledge, financial attitudes and financial behavior and on possible gender and financial education gap in financial literacy. Using the purposive sampling technique, data collection was carried out from April to June 2020, yielding a sample of 1,046 valid responses. To gain a better understanding of the relationship between financial behaviour, financial attitudes and financial knowledge, we, primarily, use exploratory factor analysis and multiple regression model. The research findings have revealed several important issues. First, findings have suggested that financial knowledge, financial attitudes and gender may be considered as an antecedent of the financial behaviour of undergraduate students. Second, findings have also suggested a statistically - significant difference between the financial literacy of undergraduate students concerning their exposure to formal financial education.

scholarly journals Financial Literacy of Students – The Case Study of UITM in Rzeszów, Poland

e-Finanse ◽  
2020 ◽  
Vol 16 (3) ◽  
pp. 106-118
Author(s):  
Karolina Palimąka
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
Young People ◽  
Literature Review ◽  
Financial Literacy ◽  
Financial Knowledge ◽  
Decision Making Process ◽  
Degree Programs

Abstract The article focuses on the phenomenon of financial literacy of students. Financial literacy is treated as a combination of financial knowledge and the decision-making process where one has to make a choice based on experience and theory. The aim of this paper is to draw attention to the essence of financial literacy, including knowledge of banking (especially of young people). For this purpose, a literature review was used. Own research complements the topic as a case study, where the author verifies whether students assess their knowledge in a way that corresponds to reality and verifies whether students need to expand their financial knowledge sorely necessary nowadays. The survey was completed by 380 students from University of Information Technology and Management in Rzeszów, of both economic and non-economic field of studies. There are some unexpected results, for example the most important is that students from a financial field of studies end up with worse results than their peers from the non-financial degree programs.

scholarly journals PERBEDAAN TINGKAT LITERASI KEUANGAN PARA WIRAUSAHAWAN DAN KARYAWAN ALUMNI UNIVERSITAS KRISTEN MARANATHA

2020 ◽  
Vol 12 (2) ◽  
pp. 16-26
Author(s):  
Surya Setyawan ◽  
Kartika Imasari Tjiptodjojo
Keyword(s):  
Financial Literacy ◽  
Analytical Methods ◽  
Financial Knowledge ◽  
Unexpected Result ◽  
Online Questionnaire ◽  
Christian University ◽  
Significant Difference ◽  
Literacy Level ◽  
The Difference ◽  
A Company

This research discusses about level of financial literacy of Maranatha Christian University alumni who active running his/her own business as an entrepreneur or active as a staff in a company. It also discuss about the difference level of financial literacy between entrepreneur and staff. There are 47 valid respondents as alumni who are asked about financial knowledge via online questionnaire. The measurement for financial literacy level is using descriptive analytical methods; moreover, the comparison between alumni who is an entrepreneur and working as a staff is using difference tests. The unexpected result shows that entrepreneur’s financial literacy level is lower than staff, but there is no significant difference between two groups.

scholarly journals Relationship Between Various Determinants and Dimensions of Financial Literacy Among Working Class

2020 ◽  
Vol 11 (5) ◽  
pp. 319
Author(s):  
Khujan Singh ◽  
Poonam Rani ◽  
Chand Kiran
Keyword(s):  
Factor Analysis ◽  
Working Class ◽  
Financial Literacy ◽  
Geographical Area ◽  
Financial Knowledge ◽  
National Capital Region ◽  
Capital Region ◽  
Significant Difference ◽  
National Capital ◽  
Financial Behaviour

The purpose of this empirical research work was to identify the relationship between various determinants of Financial Literacy among the working class of National Capital Region of India. It was a descriptive study based on the survey of 596 working class respondents. The data has been analyzed by factor analysis, correlation and regressions analysis. Based on the factor analysis, three factors have been found of financial knowledge, three factors of financial behaviour and in a similar manner four factors of financial attitude have been extracted. Further, based on the multiple regression models the contribution of financial attitude has been found highest in explaining the financial literacy and it has been followed by financial behaviour and financial knowledge. It means that both financial attitude and financial behaviour are better estimators of financial literacy in comparison to the financial knowledge. Therefore, the policy makers, financial system regulators and governments should do more efforts to improve the level of financial attitude and financial behaviour in comparison to the financial knowledge to improve the level of financial literacy because significant difference has been found in the level of financial attitude and financial behaviour across some of the demographic factors. The increased financial literacy would be helpful in improving the saving and investment behaviour of the public. This improved level of financial literacy of public will save the required level of capital for the capital formation for the targeted economic growth. Consequently, more employment opportunities will increase the social security in the society. Like every study, this study also have certain limitations like the universe of the study was limited to a particular geographical region i.e. National Capital Region of India, along with time and money constraints. In future similar study can be conducted by changing the target population and geographical area with a bigger sample.

scholarly journals Age, gender, and financial literacy in Japan

PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0259393
Author(s):  
Shohei Okamoto ◽  
Kohei Komamura
Keyword(s):  
Gender Differences ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Knowledge ◽  
Knowledge Based ◽  
Central Council ◽  
Literacy Survey ◽  
Financial Decision ◽  
Financial Behaviour ◽  
Relationship Of

Objective The aim of this study is to investigate the association between financial literacy and age as well as gender differences in financial literacy. Methods We analyse a sample of 25,000 individuals from ‘The Financial Literacy Survey 2016’ conducted by the Central Council for Financial Services Information (Bank of Japan). The analysis focuses on the relationship of age and financial literacy as well as that of age and self-rated financial knowledge. To consider factors accounting for gender differences in financial literacy, we use the Blinder-Oaxaca decomposition method. To further our understanding of financial literacy, we conduct additional analyses on financial behaviour and attitude. Results Although age is associated with increased financial literacy (Men, β: 0.249, standard error [SE]: 0.030; Women, 0.354, SE: 0.026), the growth rate decreases among the older respondents (Men, β: -0.002, SE: 0.000; Women, -0.003, SE: 0.000). However, the association between age and self-rated financial knowledge among men moves in the opposite direction (Age, β: -0.021, SE: 0.009, Age2, β: 0.000, SE: 0.000). Furthermore, female respondents are likely to be less financially literate than their male counterparts (β: -0.586, SE: 0.095) due to gender differences in the distribution of the factors that affect financial literacy (specifically education), their responses to financial literacy, and the interactions of these effects. In contrast to knowledge-based financial literacy, financial behaviour and attitudes among women are more preferable to those among men, namely, more premeditated. Conclusion Financial literacy increases until about one’s early 60s, after which it declines, while confidence in financial literacy reflects the inverse trend, especially among men. Additionally, men are more financially literate than women; however, these differences could be mitigated through education. Meanwhile, financial behaviour and attitudes among men are less premeditated. Thus, policies are needed that can help older adults with their financial decision-making, enhance women’s financial literacy, and improve men’s financial behaviours and attitudes.

scholarly journals Mediation effect of financial attitude on financial knowledge and financial behavior

2020 ◽  
Vol 9 (2) ◽  
pp. 01-08
Author(s):  
Ali Çoşkun ◽  
Nurdilek Dalziel
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Financial Knowledge ◽  
Mediation Effect ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Literacy Survey ◽  
The Individual ◽  
And Behavior ◽  
The Relationship

In this study, 396 university students in Turkey are surveyed online regarding their attitudes towards financial issues, their level of financial knowledge, and their financial behavior. The latest version of OECD/INFE Financial Literacy Survey (2018) is used in the study. Using SPSS and LISREL. Factor analysis, Cronbach's Alpha, and Structural Equation Modeling (SEM) are used to analyze the relationship between financial knowledge of the participants with their financial attitude and behavior as well as the mediation effect of financial attitude in this relationship. In line with the common wisdom that the relationship between knowledge and behavior is higher if knowledge is better reflected in the attitude of the individual, the mediation effect of financial attitude strengthens the financial knowledge and financial behavior relationship.

Cyber crimes in the banking sector: Case study of Vietnam

2020 ◽  
Vol 6 (05) ◽  
Author(s):  
LE Thanh Tam ◽  
Nguyen Minh Chau ◽  
Pham Ngoc Mai ◽  
Ngo Ha Phuong ◽  
Vu Khanh Huyen Tran
Keyword(s):  
Financial Literacy ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Legal Framework ◽  
Economic Sectors ◽  
Technological Revolution ◽  
Survey Results ◽  
Cyber Crimes

The technological revolution 4.0 brings great opportunities, but also cybercrimes to economic sectors, especially to banks. Using secondary data and survey results of 305 bank clients, the main findings of this paper are: (i) there are several types of cybercrimes in the banking sector; (ii) Vietnam is one of the top countries worldwide having hackers and being attacked by hackers, especially the banking sector. Three most common attacks are skimming, hacking and phishing. Number of cybercrime attacks in Vietnam are increasing rapidly over years; (iii) Vietnamese customers are very vulnerable to cybercrime in banking, as more than 58% seem to hear about cybercrimes, and how banks provide services to let them know about their transactions. However, more than 50% do not have any deep knowledge or any measures for preventing cybercrime; (iii) Customers believe in banks, but do not think that banks can deal with cybercrime issues well. They still feel traditional transactions are more secure than e-transactions; (iv) the reasons for high cybercrimes come from commercial banks (low management and human capacity), supporting environment (inadequate), legal framework (not yet strong and strict enough on cybercrimes), and clients (low level of financial literacy). Therefore, several solutions should be carried out, from all stakeholders, for improving the cybersecurity in Vietnamese banks. 

Factors Affecting Financial Literacy of Vietnamese Adults: A Case Study for Hanoi and Nghe An

2017 ◽  
Vol 33 (2) ◽  
Author(s):  
Tue Nguyen Dang
Keyword(s):  
Higher Education ◽  
Multiple Regression ◽  
Financial Literacy ◽  
Urban Areas ◽  
Logistic Models ◽  
Factors Affecting ◽  
Financial Behaviors ◽  
Financial Decisions ◽  
Literacy Level

This research examines the factors affecting the financial literacy of Vietnamese adults. Using a sample of 266 observations of adults in 2 big cities in Vietnam (Hanoi and Vinh in Nghe An Province), the author evaluates the literacy level of adults in these urban areas. The financial literacy of the interviewed people is low. The multiple regression results show that lower financial literacy levels associate with higher age and married status and higher financial literacy levels associate with higher education, more family members, the person making financial decisions and the person attending a useful financial course. This research also explores the association between financial literacy and financial behaviors of individuals employing logistic models. It is found that higher financial literacy associates with less probability of overspending and higher probability of saving money and careful spending. Higher financial literacy is also found to associate with higher probability of opening a savings account and making various investments. 

ANALISIS KINERJA KEUANGAN PERUSAHAAN PROPERTI YANG TERDAFTAR DI BEI SEBELUM DAN SESUDAH KEBIJAKAN LOAN TO VALUE

2019 ◽  
Vol 4 (1) ◽  
pp. 79-90
Author(s):  
Ghaniy Ridha Prima ◽  
Hermanto Siregar ◽  
Ferry Syarifuddin
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Stock Exchange ◽  
Sample Selection ◽  
Test Analysis ◽  
Asset Return ◽  
Return On Equity ◽  
Analysis Technique ◽  
Significant Difference ◽  
Before And After

The purpose of this study is to provide empirical evidence of the effects of the Loan to Value (LTV) policy on the financial performance of property and real estate companies listed on the Indonesia Stock Exchange (IDX). The sample selection uses a purposive sampling method of 42 property and real estate companies that meet the criteria. The research period is divided into 2 namely before the Loan to Value policy (2013-2014) and after the Loan to Value policy (2016-2017) with the Paired Sample t Test analysis technique. The test results show if the current ratio, Return on Asset, Return on Equity and Debt to Asset have significant differences between before and after the LTV policy is applied. While the fast ratio, cash ratio, net profit margin and Debt to Equity did not show a significant difference. Keywords: Financial Performance, Loan to Value, Property and Real Estate, Profitability Ratio, Liquidity Ratio, Solvability Ratio.

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