The relationship between financial disputes and financial literacy

Chung Hua Shen, Shih Jie Lin, De Piao Tang, Yu Jen Hsiao

Research output: Contribution to journalArticlepeer-review

17 Citations (Scopus)

Abstract

This study examines financial literacy and its relationship with financial disputes. We devised two special modules from the Third National Financial Literacy Survey conducted by Taiwan's Financial Supervisory Commission (FSC) in 2011. With this unique database, we examine topics that have rarely been discussed in other studies. Our empirical evidence suggests that people with a higher financial literacy are less likely to experience financial disputes. When the purchase of financial products and services leads to a financial dispute, people with a higher financial literacy will aggressively handle the problem. In addition, personal characteristics, such as gender, work status, and household income, are key factors affecting the chances of a financial dispute. Finally, our results are robust to potential selection bias when we include the results of the National Financial Literacy Survey conducted by the FSC in 2007, 2009, and 2011.

Original languageEnglish
Pages (from-to)46-65
Number of pages20
JournalPacific Basin Finance Journal
Volume36
DOIs
Publication statusPublished - Feb 1 2016
Externally publishedYes

Keywords

  • D12
  • Financial dispute
  • Financial literacy
  • I22
  • I28

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

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