Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The impact of financial literacy and financial interest on risk tolerance
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Banking and Finance.ORCID iD: 0000-0001-7106-4827
(English)Manuscript (preprint) (Other academic)
Abstract [en]

We investigate and compare the effects of financial literacy and financial interest on risk tolerance, evaluating not only at the means, but also at the whole distribution. We use a unique sample of 12,156 Swedish bank customers combining bank-register data with survey data. Results show that both financial literacy and financial interest are associated with higher risk tolerance. They further show that the impact of financial interest is significantly higher than the impact of financial literacy. Differences are also observed across the distribution. Quantile regressions show that financial interest has its greatest association at the medium-to-high range of risk tolerance, whereas financial literacy shows its greatest association at the lower range of risk tolerance. Findings contribute to the literature on risk tolerance, specifically pointing to the relevance of the noncognitive trait, interest, to individuals’ risk tolerance.

National Category
Economics and Business
Identifiers
URN: urn:nbn:se:kth:diva-263871OAI: oai:DiVA.org:kth-263871DiVA, id: diva2:1370914
Available from: 2019-11-18 Created: 2019-11-18 Last updated: 2019-11-18

Open Access in DiVA

fulltext(504 kB)29 downloads
File information
File name FULLTEXT01.pdfFile size 504 kBChecksum SHA-512
d7e61fcd2ec7dfe9ce3800b4d4ceb5102c0454ec18cf026043d82a9888c5bbb2a3c063e11895c9e60379bf08442d12a187ff937428d08f9bc4f59036ee7f302a
Type fulltextMimetype application/pdf

Search in DiVA

By author/editor
Hermansson, Cecilia
By organisation
Banking and Finance
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
Total: 29 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 48 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf