The Behavioural Aspects of Financial Literacy

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© 2021
dc.descriptionThis article is not available at CUD collection. The version of scholarly record of this article is published in The Behavioural Aspects of Financial Literacy (2021), available online at:
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. Licensee MDPI, Basel, Switzerland.en_US
dc.identifier.citationGerth, F., Lopez, K., Reddy, K., Ramiah, V., Wallace, D., Muschert, G., ... & Jooste, L. (2021). The Behavioural Aspects of Financial Literacy. Journal of Risk and Financial Management, 14(9), 395.
dc.publisherMultidisciplinary Digital Publishing Institute (MDPI)en_US
dc.relationAuthors Affiliations : Florian Gerth, Faculty of Business, University of Wollongong in Dubai, Dubai P.O. Box 20183, United Arab Emirates ; Katia Lopez, Researchers Sans Frontiers, Dubai P.O. Box 73000, United Arab Emirates ; Krishna Reddy, Postgraduate Business, Faculty of Health, Education, and Environment, Toi Ohomai Institute of Technology, Rotorua 3046, New Zealand ; Vikash Ramiah, Faculty of Business, University of Wollongong in Dubai, Dubai P.O. Box 20183, United Arab Emirates ; Damien Wallace, UniSA Business, University of South Australia, Adelaide 5000, Australia ; Glenn Muschert, Faculty of Humanities and Social Sciences, Khalifa University of Science and Technology, Abu Dhabi P.O. Box 127788, United Arab Emirates ; Alex Frino, Faculty of Business, University of Wollongong in Dubai, Dubai P.O. Box 20183, United Arab Emirates ; Leonie Jooste, Faculty of Management, Canadian University Dubai, Dubai P.O. Box 117781, United Arab Emirates
dc.relation.ispartofseriesJournal of Risk and Financial Management;Volume 14, Issue 9
dc.rightsCreative Commons Attribution License
dc.rights.holderCopyright : © 2021 by the authors. Licensee MDPI, Basel, Switzerland.
dc.subjectbehavioural financeen_US
dc.subjectfinancial literacyen_US
dc.subjectrepresentativeness biasen_US
dc.subjectself-serving biasen_US
dc.subjectoverconfidence biasen_US
dc.subjectloss aversion biasen_US
dc.subjecthindsight biasen_US
dc.titleThe Behavioural Aspects of Financial Literacyen_US
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