IDEAS home Printed from https://ideas.repec.org/a/cup/jpenef/v21y2022i4p634-664_8.html
   My bibliography  Save this article

Trust, financial literacy, and financial market participation

Author

Listed:
  • Fisch, Jill E.
  • Seligman, Jason S.

Abstract

Willingness to participate in financial markets is important for financial well-being, including the accumulation of retirement savings through self-directed pension programs. We consider the roles of two key factors, trust and financial literacy in financial market participation. We find both are strongly related to participation. Although trust is more uniformly correlated with increases in financial market participation, the relationship between financial literacy and engagement is u-shaped, with increases in financial literacy first associated with reductions and subsequently with increases in the levels of participation. Our findings suggest trust and financial literacy play different roles and that each is related to investment behaviors in important ways.

Suggested Citation

  • Fisch, Jill E. & Seligman, Jason S., 2022. "Trust, financial literacy, and financial market participation," Journal of Pension Economics and Finance, Cambridge University Press, vol. 21(4), pages 634-664, October.
    • Handle: RePEc:cup:jpenef:v:21:y:2022:i:4:p:634-664_8
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1474747221000226/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jpenef:v:21:y:2022:i:4:p:634-664_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/pef .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.