Title: Investment competence and advice seeking
Authors : Bachmann, Kremena
Hens, Thorsten
Published in : Journal of Behavioral and Experimental Finance
Volume(Issue) : 6
Pages : 27
Pages to: 41
Publisher / Ed. Institution : Elsevier
Issue Date: 2015
License (according to publishing contract) : Licence according to publishing contract
Type of review: Peer review (Publication)
Language : English
Subjects : Financial literacy; Behavioral biase; Demand for financial advice; Household finance
Subject (DDC) : 332.6: Investment
Abstract: This study evaluates individuals’ abilities to avoid investment mistakes driven by behavioral biases and analyzes the relationship between investment competence and the propensity to seek or rely on professional advice. We use novel survey data collected from a representative sample of Swiss households. We find that – even after controlling for socio-economic and demographic characteristics – investment competence is positively related to demand for financial advice. It appears that investors who are at the highest risk of making investment mistakes are those who are the least likely to seek help from professional advisors. Therefore, supply-side solutions imposed by regulators to protect financial customers may not benefit those who need them most.
Departement: School of Management and Law
Organisational Unit: Institute of Wealth and Asset Management (IWA)
Publication type: Article in scientific Journal
DOI : 10.1016/j.jbef.2015.03.001
ISSN: 2214-6350
URI: https://digitalcollection.zhaw.ch/handle/11475/2540
Appears in Collections:Publikationen School of Management and Law

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