Conference Agenda

Session
HF 03: Financial Literacy and Financial Decisions
Time:
Friday, 18/Aug/2023:
1:30pm - 3:00pm

Session Chair: Laurent Calvet, SKEMA Business School
Location: 2A-24 (floor 2)


Presentations
ID: 1978

Disparities in Financial Literacy, Pension Planning, and Saving Behavior

Tabea Bucher-Koenen1, Andreas Hackethal2, Johannes Kasinger2, Christina Laudenbach2

1ZEW-Leibniz Center for European Ecnomic Research, Germany; 2Goethe University Frankfurt

Discussant: Sebastien Betermier (McGill University)

Financial literacy affects wealth accumulation, and pension planning plays a key role in this relationship. In a large field experiment, we employ a digital pension aggregation tool to confront a treatment group with a simplified overview of their current pension claims across all pillars of the pension system. We combine survey and administrative bank data to measure the effects on actual saving behavior. Access to the tool decreases pension uncertainty for treated individuals. Average savings increase especially for the financially less literate. We conclude that simplification of pension information can potentially reduce disparities in pension planning and savings behavior.

EFA2023_1978_HF 03_1_Disparities in Financial Literacy, Pension Planning, and Saving Behavior.pdf


ID: 1824

Business Education and Portfolio Returns

Adam Altmejd2, Thomas Jansson3, Yigitcan Karabulut1,4

1Frankfurt School of Finance and Management, Germany; 2SOFI, Stockholm University and Stockholm School of Economics; 3Sveriges Riksbank; 4CEPR

Discussant: Kathrin Schlafmann (Copenhagen Business School)

We provide evidence of a positive causal link between financial knowledge acquired through business education and returns on stock investments. Using exogenous variation generated by admission thresholds to university business programs in Sweden, we document that early investments in financial sophistication causes individuals to invest significantly more in the stock market, to earn higher portfolio returns, and to end up accumulating higher levels of wealth. Investments in financial sophistication at the launch of economic life thus significantly alters the life cycle wealth profiles of individuals.

EFA2023_1824_HF 03_2_Business Education and Portfolio Returns.pdf


ID: 1794

The Banker in Your Social Network

Samuli Knüpfer1, Elias Rantapuska2, Theresa Spickers3

1Aalto University School of Business, BI Norwegian Business School, and IFN; 2Aalto University School of Business; 3University of Amsterdam

Discussant: Gianpaolo Parise (EDHEC)

We study how bankers affect financial decisions of their social connections. Register data from Finland allow us to relate professional transitions into the banking industry to the financial decisions of the newly appointed banker’s family members. This within-individual identification strategy reveals a strong positive effect on financial market participation. The banker effect declines in social distance, emanates largely from nonparticipating individuals, and is stronger for riskier assets. Market participants appear unaffected. Additional results suggest bankers’ sales skills are instrumental for effecting change rather than their financial knowledge solely. These insights are relevant for understanding the design of policies attempting to improve financial literacy, the impact and value of financial advice, and the nature of expertise in financial markets.

EFA2023_1794_HF 03_3_The Banker in Your Social Network.pdf