Investment Literacy, Overconfidence and Cryptocurrency Investment

2.Kim, K. T., Hanna, S. D., & Lee, S. T. (2023). Investment literacy, overconfidence and cryptocurrency investment. Financial Services Review, 31(2/3), 121–132. https://doi.org/10.61190/fsr.v31i2/3.3530

30 Pages Posted: 2 Nov 2021 Last revised: 10 Apr 2024

See all articles by Kyoung Tae Kim

Kyoung Tae Kim

University of Alabama

Sherman D. Hanna

Ohio State University (OSU)

Sunwoo T. Lee

York University

Date Written: March 1, 2022

Abstract

Cryptocurrency has been increasingly popular with investors in US financial market. Using the 2018 National Financial Capability Study Investor survey, this study examined the association between investment literacy and cryptocurrency investment. About 13% of investors invested in cryptocurrency directly or indirectly. Results from regression analyses show that objective investment literacy was negatively while subjective literacy was positively associated with holding cryptocurrency. Overconfident investors were more likely to invest in cryptocurrency, and results were robust across three overconfidence measures. This study has implications for investment advice, financial education and research.

Keywords: Investment literacy, financial knowledge, overconfidence, investment, cryptocurrency

JEL Classification: G5, G11, G53

Suggested Citation

Kim, Kyoung Tae and Hanna, Sherman D. and Lee, Sunwoo, Investment Literacy, Overconfidence and Cryptocurrency Investment (March 1, 2022). 2.Kim, K. T., Hanna, S. D., & Lee, S. T. (2023). Investment literacy, overconfidence and cryptocurrency investment. Financial Services Review, 31(2/3), 121–132. https://doi.org/10.61190/fsr.v31i2/3.3530 , Available at SSRN: https://ssrn.com/abstract=3953242 or http://dx.doi.org/10.2139/ssrn.3953242

Kyoung Tae Kim (Contact Author)

University of Alabama ( email )

316-C Adams Hall
Tuscaloosa, AL 35487-0001
United States

Sherman D. Hanna

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

Sunwoo Lee

York University ( email )

4700 Keele Street
252 Atkinson Building
Toronto, Ontario M3J 1P3
Canada

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
1,267
Abstract Views
3,412
Rank
30,173
PlumX Metrics