Abstract
We study the effect of a financial education intervention on the propensity to delegate financial decision-making to a digital asset management tool (robo-advisor). Our results suggest that investors are more inclined to delegate financial decision-making when they receive detailed information on the investment principles underlying the robo-advisory algorithm. The intervention also affects investors' independent investment behavior as it increases diversification and revealed risk aversion, while it decreases self-reported risk aversion. Our findings imply that robo-advisors benefit from providing financial education to prospective investors and that financial education may indirectly affect investment outcomes by encouraging the use of financial advice.
Item Type: | Journal article |
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Faculties: | Munich School of Management > Institute for Capital Markets and Corporate Finance |
Subjects: | 300 Social sciences > 330 Economics |
ISSN: | 2214-8043 |
Language: | English |
Item ID: | 84689 |
Date Deposited: | 25. Jan 2022 09:11 |
Last Modified: | 01. Dec 2023 08:51 |