Article

Financial Literacy and Portfolio Dynamics

Milo Bianchi

Résumé

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.

Remplace

Milo Bianchi, « Financial Literacy and Portfolio Dynamics », TSE Working Paper, n° 17-808, mai 2017.

Référence

Milo Bianchi, « Financial Literacy and Portfolio Dynamics », The Journal of Finance, vol. 73, n° 2, 2018, p. 831–859.

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Publié dans

The Journal of Finance, vol. 73, n° 2, 2018, p. 831–859