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Can financial literacy be a substitute for financial advisers? Evidence from China

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  • Liu, Bofan
  • Lu, Bin

Abstract

This study investigates the influence of financial literacy on the utilization of financial advisers in China, using 2019 data from the China Household Finance Survey and a probit with sample selection model. The findings indicate that elevated levels of financial literacy have a beneficial impact on both the demand for and employment of financial advisers. The impact is more significant among younger or middle-aged individuals with debt and awareness of financial threshold changes. The research also reveals that financial literacy improves information attention and comprehension of risky financial products, resulting in greater demand for and employment of financial advisers.

Suggested Citation

  • Liu, Bofan & Lu, Bin, 2023. "Can financial literacy be a substitute for financial advisers? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:pacfin:v:79:y:2023:i:c:s0927538x23001129
    DOI: 10.1016/j.pacfin.2023.102046
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