Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153730
Authors: 
Georgarakos, Dimitris
Inderst, Roman
Year of Publication: 
2011
Series/Report no.: 
ECB Working Paper 1296
Abstract: 
We introduce professional financial advice in households’ choice to hold risky financial assets. Consistent with the predictions from a formal model, we present evidence that households’ trust in financial advice only matters when their perceived own financial capability is low. Instead, for households with higher financial capability, only the perception of legal protection in financial markets matters for stock market participation. Our empirical analysis highlights economically significant differences in households’ perception of their rights as consumers of financial services, even when their objective circumstances should not be much different.
Subjects: 
Consumer Protection
Financial Advice
Household finance
Trust
JEL: 
E1
G2
D8
Document Type: 
Working Paper

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