Knowing is Trusting? An Experimental Test of the Role of Information in Advisory

20 Pages Posted: 22 Jun 2015

See all articles by Caterina Cruciani

Caterina Cruciani

Ca Foscari University of Venice - Department of Management

Gloria Gardenal

Ca Foscari University of Venice - Department of Management

Anna Moretti

Ca Foscari University of Venice - Department of Management

Date Written: June 22, 2015

Abstract

The recent economic crisis still lingering in Europe has deeply affected the way individuals look at the investment market. Understanding the trust processes underlying the decision to invest with financial intermediaries is of particular importance both at managerial (product development and advertisement) and at normative level (how intermediaries are regulated). Using an online experiment, this paper investigates whether discrepancies in the financial literacy of investors and brokers can be used to explain the decision to trust – thus, to invest in the financial market. The results show that trust is affected by the information disclosure in somewhat unexpected ways.

Keywords: financial market, financial literacy, trust, advisory

JEL Classification: D12, D8, D91, G11

Suggested Citation

Cruciani, Caterina and Gardenal, Gloria and Moretti, Anna, Knowing is Trusting? An Experimental Test of the Role of Information in Advisory (June 22, 2015). Department of Management, Università Ca' Foscari Venezia Working Paper No. 2015/02. Available at SSRN: https://ssrn.com/abstract=2621434 or http://dx.doi.org/10.2139/ssrn.2621434

Caterina Cruciani

Ca Foscari University of Venice - Department of Management ( email )

San Giobbe, Cannaregio 873
Venice, 30121
Italy

Gloria Gardenal

Ca Foscari University of Venice - Department of Management ( email )

San Giobbe, Cannaregio 873
Venice, 30121
Italy

Anna Moretti (Contact Author)

Ca Foscari University of Venice - Department of Management ( email )

San Giobbe, Cannaregio 873
Venice, 30121
Italy

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