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Financial literacy overconfidence and investment fraud victimization

Author

Listed:
  • Xiao, Xiao
  • Li, Xiangyi
  • Zhou, Yi

Abstract

This study uses the data of a nationally representative survey in China to investigate the role of financial literacy overconfidence in investment fraud victimization. The study finds that male, wealthy, and educated respondents tend to be more confident about their financial knowledge. Moreover, overconfident respondents are more likely to believe that the abnormally high returns claimed in two hypothetical investment opportunities are attainable.

Suggested Citation

  • Xiao, Xiao & Li, Xiangyi & Zhou, Yi, 2022. "Financial literacy overconfidence and investment fraud victimization," Economics Letters, Elsevier, vol. 212(C).
    • Handle: RePEc:eee:ecolet:v:212:y:2022:i:c:s0165176522000209
    DOI: 10.1016/j.econlet.2022.110308
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial literacy; Overconfidence; Investment fraud victimization; Household finance;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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