Do financial networks matter in retirement investment decisions?

Evidence from Generation Yers

Authors

  • Youngkyun Park College of Business and Economics, University of Idaho
  • Yunhyung Chung College of Business and Economics, University of Idaho

DOI:

https://doi.org/10.61190/fsr.v24i1.3265

Keywords:

Retirement investment decisions, Financial networks, Financial literacy

Abstract

Using experimental survey data collected from a sample of Generation Yers, we examine the joint influence of financial literacy and financial networks on individual retirement investment decisions. We find, first, that financial literacy and financial network intensity (the network strength with the financially literate) are positively related to stock allocation. Second, the positive relationship between financial literacy and stock allocation, however, is significant only among those having high financial network intensity. This finding suggests that the positive effects of financial literacy documented in the literature can be limited to only those who have strong networks with the financially literate.

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Published

2015-03-30

How to Cite

Park, Y., & Chung, Y. (2015). Do financial networks matter in retirement investment decisions? : Evidence from Generation Yers. Financial Services Review: The Journal of Individual Financial Management, 24(1), 77–99. https://doi.org/10.61190/fsr.v24i1.3265

Issue

Vol. 24 No. 1 (2015): Spring 2015

Section

New Original Submission

License

Copyright (c) 2015 Academy of Financial Services

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