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Financial literacy and risky asset holdings: evidence from China
Author(s) -
Liao Li,
Xiao Jing Jian,
Zhang Weiqiang,
Zhou Congyi
Publication year - 2017
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12329
Subject(s) - financial literacy , china , business , context (archaeology) , asset (computer security) , financial asset , financial market , market data , literacy , finance , financial system , economics , economic growth , political science , computer security , computer science , law , paleontology , biology
Abstract Although financial literacy is important for participating in financial markets, the level of financial literacy of Chinese consumers is low compared with those in developed countries. Using data from the 2014 China Survey of Consumer Finances, we examine the relation between financial literacy and the risky asset holding behaviour of Chinese households, in the context of an emerging financial market with a distinct institutional background. The findings reveal that consumers with higher levels of financial literacy are more likely to hold risky financial assets than those with lower levels. The potential impacts are derived mainly from advanced financial literacy.