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Bianchi, Milo
(2018)
Financial Literacy and Portfolio Dynamics.
Journal of Finance, 73 (2).
pp. 831-859.
This is the latest version of this item.
Abstract
We match administrative panel data on portfolio choices with survey measures of financial literacy. When we control for portfolio risk, the most literate households experience 0.4% higher annual returns than the least literate households. Distinct portfolio dynamics are the key determinant of this difference. More literate households hold riskier positions when expected returns are higher. They more actively rebalance their portfolios and do so in a way that holds their risk exposure relatively constant over time. They are more likely to buy assets that provide higher returns than the assets that they sell.
| Item Type: | Article |
|---|---|
| Language: | English |
| Date: | April 2018 |
| Refereed: | Yes |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse), TSM Research (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 03 May 2018 13:28 |
| Last Modified: | 02 Apr 2021 15:57 |
| OAI Identifier: | oai:tse-fr.eu:31785 |
| URI: | https://publications.ut-capitole.fr/id/eprint/25625 |
Available Versions of this Item
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Financial Literacy and Portfolio Dynamics. (deposited 18 May 2017 14:03)
- Financial Literacy and Portfolio Dynamics. (deposited 03 May 2018 13:28) [Currently Displayed]
