Impact of financial literacy on individuals' financial decisions: A comparative analysis of eastern, central, and western regions in China
Document Type
Article
Publication Date
1-1-2022
Abstract
This study examines the following research questions: 1. What are the main characteristics of financial literacy in China? 2. Are there differences in the levels of financial literacy between regions? 3. What are the factors affecting financial literacy? It uses data gathered from a survey of 474 respondents. The findings reveal different financial literacy characteristics across China's three major regions and allow for an exploration of the influencing factors and corresponding impacts on financial decisions. The financial literacy levels exhibit a decreasing trend from East to West, with small differences in the mean value. Overall, financial literacy is most strongly correlated with deposits, followed by funds, stocks, and emergency savings decisions. However, different regions perform differently in various aspects of financial literacy. Drawing from the findings, the paper proposes some policy recommendations. © 2022 Institute of China and Asia-Pacific Studies - National Sun Yat-sen University. All rights reserved.
Keywords
Financial behavior, Financial decision, Financial literacy, Portfolio diversification
Divisions
Faculty_of_Business_and_Accountancy
Funders
None
Publication Title
Contemporary Chinese Political Economy and Strategic Relations
Volume
8
Issue
1
Publisher
Institute of China and Asia-Pacific Studies - National Sun Yat-sen University