Zhong Y. Chu|Zhengwei Wang|Jing Jian Xiao|Weiqiang Zhang
Financial Literacy, Portfolio Choice and Financial Well-Being
Tsinghua University|Tsinghua University|University of Rhode Island|Tsinghua University
study examined potential effects financial literacy household portfolio choice investment return indicator financial wellbeing using data 2014 chinese survey consumer finance financial literacy measured categorized basic financial literacy advanced financial literacy study tested hypothesis financial literacy affects household choice stock mutual fund results indicated households higher financial literacy especially higher level advanced financial literacy tended delegate least part portfolio experts invest mutual fund however households overconfident financial literacy tended invest likely hold stocks portfolios findings also indicated households higher financial literacy better chance receiving positive investment return suggesting higher financial literacy may result better financial outcome