Financial Adviser Anxiety, Financial Literacy and Financial Advice Seeking

39 Pages Posted: 24 Mar 2014 Last revised: 25 Mar 2014

See all articles by Paul Gerrans

Paul Gerrans

The University of Western Australia - UWA Business School

Douglas A. Hershey

Oklahoma State University - Stillwater

Date Written: March 25, 2014

Abstract

Seeking professional financial advice to assist with financial decision making is an important option for individuals faced with increased responsibility for their financial circumstances. We explore the role of two potential barriers/enablers to accessing advice. First, we explore the role of a variety of financial literacy measures to explain observed financial advice consultation. Second, we introduce a novel measure of financial adviser anxiety. The latter is inspired by evidence in the medical setting suggesting individuals may refrain from seeking advice where objectively it is assessed to be in their interests to do so. This may due to embarrassment, worry or anxiety with the consultation process. A new scale is presented which has strong validity and a demonstrated ability to explain reported future levels of professional advice seeking.

Keywords: financial advice, financial literacy, financial adviser anxiety, personal finance, retirement planning

JEL Classification: D14, G20, G23

Suggested Citation

Gerrans, Paul and Hershey, Douglas A., Financial Adviser Anxiety, Financial Literacy and Financial Advice Seeking (March 25, 2014). Available at SSRN: https://ssrn.com/abstract=2413095 or http://dx.doi.org/10.2139/ssrn.2413095

Paul Gerrans (Contact Author)

The University of Western Australia - UWA Business School ( email )

Crawley, Western Australia 6009
Australia
61 8 64882910 (Phone)

Douglas A. Hershey

Oklahoma State University - Stillwater ( email )

Stillwater, OK 74078-0555

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