The Role of Financial Literacy in Retirement Investment Choice

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04130081%3A_____%2F19%3AN0000056" target="_blank" >RIV/04130081:_____/19:N0000056 - isvavai.cz</a>

Výsledek na webu

<a href="http://economic-policy.pl/index.php/journal-issues/archive/45-2019-volume-14-issue-4" target="_blank" >http://economic-policy.pl/index.php/journal-issues/archive/45-2019-volume-14-issue-4</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.24136/eq.2019.027" target="_blank" >10.24136/eq.2019.027</a>

Jazyk výsledku

angličtina

Název v původním jazyce

The Role of Financial Literacy in Retirement Investment Choice

Popis výsledku v původním jazyce

Research background: Preparation for retirement is a major concern for the people in the workforce as they have to encounter considerable difficulties in making the right investment decisions for their retirement. Purpose of the article: This research extends the literature on personal finance by investigating the impact of both financial literacy levels and pension knowledge on employees' investment choice decision for their retirement, while in previous literature the role of these factors has mainly been explored separately. Methods: To conduct the research, a survey questionnaire was applied to collect data in three main regions of Vietnam comprising Northern. Central and Southern Vietnam. Data collection was made in 2018, in which 427 valid questionnaires Were used for data analysis from 700 questionnaires. Two estimation methods are employed for analysis in this study, including a linear probability model (LPM) and two-stage least squares (2SLS) model. The findings of this research remain significant after the Two-Stage Least Squares (2SLS) regression model is used as an estimation technique to eliminate potential bias caused by endogenous problems. Finding & Value added: 'the results show that basic financial literacy level and pension knowledge are principal factors which significantly increase the probability of exercising retirement investment choice of employees, while advanced financial literacy level factor has a significant effect on choosing growth investing options for their retirement. Further. this research finds that there is no correlation between employees' financial risk tolerance and their retirement investment choice. Furthermore, the study proposes and offers new evidence that pension knowledge is a decisive factor providing employees with encouragement to exercise retirement investment choice and those who consult with financial advisors tend to take part in growth investing option.

Název v anglickém jazyce

The Role of Financial Literacy in Retirement Investment Choice

Popis výsledku anglicky

Research background: Preparation for retirement is a major concern for the people in the workforce as they have to encounter considerable difficulties in making the right investment decisions for their retirement. Purpose of the article: This research extends the literature on personal finance by investigating the impact of both financial literacy levels and pension knowledge on employees' investment choice decision for their retirement, while in previous literature the role of these factors has mainly been explored separately. Methods: To conduct the research, a survey questionnaire was applied to collect data in three main regions of Vietnam comprising Northern. Central and Southern Vietnam. Data collection was made in 2018, in which 427 valid questionnaires Were used for data analysis from 700 questionnaires. Two estimation methods are employed for analysis in this study, including a linear probability model (LPM) and two-stage least squares (2SLS) model. The findings of this research remain significant after the Two-Stage Least Squares (2SLS) regression model is used as an estimation technique to eliminate potential bias caused by endogenous problems. Finding & Value added: 'the results show that basic financial literacy level and pension knowledge are principal factors which significantly increase the probability of exercising retirement investment choice of employees, while advanced financial literacy level factor has a significant effect on choosing growth investing options for their retirement. Further. this research finds that there is no correlation between employees' financial risk tolerance and their retirement investment choice. Furthermore, the study proposes and offers new evidence that pension knowledge is a decisive factor providing employees with encouragement to exercise retirement investment choice and those who consult with financial advisors tend to take part in growth investing option.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2019

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Equilibrium. Quarterly Journal of Economics and Economic Policy

ISSN

1689-765X

e-ISSN

2353-3293

Svazek periodika

14

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

PL - Polská republika

Počet stran výsledku

21

Strana od-do

569-589

Kód UT WoS článku

000511458600001

EID výsledku v databázi Scopus

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