Financial Advice and Stock Market Participation
52 Pages Posted: 18 Jul 2010 Last revised: 7 Jun 2014
Date Written: May 2014
We introduce professional financial advice in households’ choice to hold risky financial assets. Depending on their perceived own financial capability, it is either trust in financial advice or their perception of consumer protection that affects more households’ willingness to hold risky assets such as stocks. We present evidence consistent with these predictions. Our empirical analysis also highlights economically significant differences in households’ perception of their rights as consumers of financial services, even when they face similar legal conditions.
Keywords: Financial Advice, Trust, Consumer Protection, Household Finance
JEL Classification: E1, G2, D8
Suggested Citation: Suggested Citation