The Behavioural Aspects of Financial Literacy

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dc.contributor.authorGerth, Florian
dc.contributor.authorLopez, Katia
dc.contributor.authorReddy, Krishna
dc.contributor.authorRamiah, Vikash
dc.contributor.authorWallace, Damien
dc.contributor.authorMuschert, Glenn
dc.contributor.authorFrino, Alex
dc.contributor.authorJooste, Leonie
dc.date.accessioned2023-09-27T13:40:19Z
dc.date.available2023-09-27T13:40:19Z
dc.date.issued2021-09
dc.description.abstractIn this paper, we investigate the contribution of behavioural characteristics to the financial literacy of UAE residents after controlling for demographic factors. Specifically, we test the relationship between financial literacy and behavioural biases such as representativeness, self-serving, overconfidence, loss aversion, and hindsight bias. Using data collected through survey questionnaires, we apply the methodology developed by the Organization of Economic Co-operation and Development (OECD) to compute financial literacy scores. Our overall results show that all behavioural biases except for overconfidence bias are positively related to financial literacy. Furthermore, some biases exhibit a stronger quantitative relationship with financial literacy than others. For example, hindsight bias displays the strongest link to financial literacy, followed by self-serving bias. The weakest but still statistically significant effect is loss aversion bias. Although biases, in general, have negative connotations, behavioural biases appear to be related to higher levels of financial literacy. © 2021 by the authors.
dc.identifier.citationGerth, F., Lopez, K., Reddy, K., Ramiah, V., Wallace, D., Muschert, G., Frino, A., & Jooste, L. (2021). The Behavioural Aspects of Financial Literacy. Journal of Risk and Financial Management, 14(9), 395. https://doi.org/10.3390/jrfm14090395
dc.identifier.issn19118074
dc.identifier.urihttps://doi.org/10.3390/jrfm14090395
dc.identifier.urihttps://hdl.handle.net/20.500.12519/838
dc.language.isoen
dc.publisherMultidisciplinary Digital Publishing Institute (MDPI)
dc.relation.ispartofseriesJournal of Risk and Financial Management; Volume 14, Issue 9
dc.rightsThis article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license
dc.rights.holderCopyright : © 2021 by the authors. Licensee MDPI, Basel, Switzerland.
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjectbehavioural finance
dc.subjectfinancial literacy
dc.subjecthindsight bias
dc.subjectloss aversion bias
dc.subjectoverconfidence bias
dc.subjectrepresentativeness bias
dc.subjectself-serving bias
dc.titleThe Behavioural Aspects of Financial Literacy
dc.typeArticle
person.affiliation.nameAuthors Affiliations: Gerth, F., Faculty of Business, University of Wollongong in Dubai, Dubai P.O. Box 20183, United Arab Emirates; Lopez, K., Researchers Sans Frontiers, P.O. Box 73000, Dubai, United Arab Emirates; Reddy, K., Postgraduate Business, Faculty of Health, Education, and Environment, Toi Ohomai Institute of Technology, Rotorua, 3046, New Zealand; Ramiah, V., Faculty of Business, University of Wollongong in Dubai, Dubai P.O. Box 20183, United Arab Emirates; Wallace, D., UniSA Business, University of South Australia, Adelaide, 5000, Australia; Muschert, G., Faculty of Humanities and Social Sciences, Khalifa University of Science and Technology, P.O. Box 127788, Abu Dhabi, United Arab Emirates; Frino, A., Faculty of Business, University of Wollongong in Dubai, Dubai P.O. Box 20183, United Arab Emirates; Jooste, L., Faculty of Management, Canadian University Dubai, P.O. Box 117781, Dubai, United Arab Emirates

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