Do financial networks matter in retirement investment decisions? Evidence from Generation Yers

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...

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Bibliographic Details
Published inFinancial services review (Greenwich, Conn.) Vol. 24; no. 1; pp. 77 - 99
Main Authors Chung, Yunhyung, Park, Youngkyun
Format Journal Article
LanguageEnglish
Published Atlanta Financial Services Review 22.03.2015
Academy of Financial Services
Subjects
Analysis
Business education graduates
Careers
Costs
Decision making
Defined contribution plans
Financial literacy
Financial markets
Financial planners
Forecasts and trends
Hypotheses
Influence
Investments
Knowledge
Market surveys
Methods
Millennials
Planning
Portfolio management
Retirement planning
Social interaction
Social networks
Social security
Studies
Surveys
United States
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Summary: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.
ISSN:1873-5673
1057-0810
1057-0810
1873-5673
DOI:10.61190/fsr.v24i1.3265