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Financial literacy and investment returns: The moderating effect of education level

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  • Wang, Guan
  • Zhang, Mengchen
  • He, Beiting

Abstract

The purpose of this research is to explore the far-reaching implications of financial literacy for investment returns. Employing a large-scale sample survey in China during 2011 to 2021, we find strong evidence that financial literacy enhances investment returns. Moreover, this positive relationship is enlarged by the education level. This research highlights the importance of financial literacy and education in facilitating investment returns. The finding of this research provides valuable guidance for individuals and policymakers.

Suggested Citation

  • Wang, Guan & Zhang, Mengchen & He, Beiting, 2024. "Financial literacy and investment returns: The moderating effect of education level," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008110
    DOI: 10.1016/j.frl.2024.105781
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    References listed on IDEAS

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