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dc.contributor.authorde Goeij, Peter*
dc.contributor.authorVan Campenhout, Geert*
dc.contributor.authorSubotic, Marjana*
dc.contributor.authorde Goeij, Peter
dc.contributor.authorVan Campenhout, Geert
dc.contributor.authorSubotic, Marjana
dc.date.accessioned2018-01-30T15:00:38Z
dc.date.available2018-01-30T15:00:38Z
dc.date.issued2018
dc.identifier.doi10.1111/ecno.12112
dc.identifier.urihttp://hdl.handle.net/20.500.12127/5904
dc.description.abstractWe investigate the effect of financial literacy and index mutual fund risk disclosure format on investors’ risk perception by examining the risk disclosure part in the Key Investor Information Document (KIID) for UCITS funds in Europe. Using an experimental survey administered to 244 university students we find that both financial literacy and the KIID risk representation affect investors’ risk level perception accuracy. In addition, we find indications that financial literacy is less important if the complexity of the risk decision framework is reduced, although in our samle this effect is weak. Our results indicate that as an alternative to efforts taken to stimulate financial literacy, policy makers can effectively impact investors’ risk assessment by presenting a risk indicator that simplifies the decision framework for all investors, irrespective of their level of financial literacy.
dc.description.sponsorshipPart of the research was funded by Special Fund research grant of the National Bank of Belgium and a grant from the TiSEM Alumni Funden_US
dc.language.isoen
dc.publisherWiley
dc.subjectFinancial Literacy
dc.subjectKey Investor Information Document (KIID)
dc.titleImproving index mutual fund risk perception: Increase financial literacy or communicate better? (Published Online)
dc.identifier.journalEconomic Notes - Review of Banking, Finance and Monetary Economics
dc.contributor.departmentTilburg University
dc.contributor.departmentKU Leuven
dc.identifier.eissn1468-0300
vlerick.knowledgedomainAccounting & Finance
vlerick.knowledgedomainSpecial Industries : Financial Services Management
vlerick.typearticleJournal article
vlerick.vlerickdepartmentEGS
dc.identifier.vperid231046


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