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2017 | OriginalPaper | Chapter

14. Attitude Toward Risk and Financial Literacy in Investment Planning

Authors : Gianni Nicolini, Tommy Gärling, Anders Carlander, Jeanette Carlsson Hauff

Published in: Risk Culture in Banking

Publisher: Springer International Publishing

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Abstract

Financial literacy is shown to influence investment decisions in different ways. One possible influence is that a lack of understanding of financial risk causes a negative risk attitude with the consequence for optimal investment behaviour that the positive relation between risk and return is not properly taken into account. The authors analyse data (n = 1150) collected in 2015 from three European countries (Italy, Sweden, and Spain) to test whether people with a low financial literacy have a negative risk attitude. The results confirm that survey respondents low in financial literacy on average rate their risk attitude more negative than more financial literate respondents do.

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Title: Attitude Toward Risk and Financial Literacy in Investment Planning
Authors: Gianni Nicolini
Tommy Gärling
Anders Carlander
Jeanette Carlsson Hauff
Publisher: Springer International Publishing
Book: Risk Culture in Banking
Print ISBN: 978-3-319-57591-9

Electronic ISBN: 978-3-319-57592-6

Copyright Year: 2017
DOI: https://doi.org/10.1007/978-3-319-57592-6_14