IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/20651.html

Digital Transmission of Financial Knowledge: Evidence from Stock Market Investment

Author

Listed:
  • Guo, Xiaomin
  • Huang, Yi
  • Sun, Qi
  • Yeung, Bernard

Abstract

This paper examines the impact of a digital platform’s transmission of financial knowledge on users’ stock market participation and investment performance. Leveraging a Chinese platform’s randomly distributed prompts as an instrument, we demonstrate that access to financial information increases stock investment, enhances portfolio diversification, and improves risk-adjusted returns, even among older, less educated and less affluent users. Although initial responses to the prompts are modest, sustained exposure overcomes inertia and drives considerable engagement. Digitalization thus holds promises for democratizing finance by providing scalable, low-cost financial education that helps individuals make more informed investment decisions.

Suggested Citation

  • Guo, Xiaomin & Huang, Yi & Sun, Qi & Yeung, Bernard, 2025. "Digital Transmission of Financial Knowledge: Evidence from Stock Market Investment," CEPR Discussion Papers 20651, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:20651
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP20651
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:20651. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CEPR (email available below). General contact details of provider: https://cepr.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.