The Study on the Relationship among Investors' Self-Control, Financial Advisior and Financial Dipute : Evidence Form Taiwan.(3/3)

Tremendous literature have found that people’s lake of financial literacy may be insufficient to guarantee that households make sound financial decisions (Ex. Allmenberg and Dreber (2015); Bellofatto, D’Hondt, and De Winne (2018); Hsiao and Tsai (2018); Klapper and Panos (2011); Klapper, Lusardi, and Panos (2013); Hsiao, and Yeh (2017); van Rooij, Lusardi, and Alessie (2011a, 2011b)). However, many literature also found that people with strong self-control or resort to the advice of experts are more likely to reduce the occurrence of financial decision errors (Ex. Achtziger, Hubert, Kenning, Raab, and Reisch (2015); Gathergood (2012); Gathergood and Webber (2014); Shen, Lin, Tang, and Hsiao (2016a); Strömbäcka, Linda, Skagerlundb, Västfjäll, and Tinghög (2017)). To the best of my knowledge, this study is the first attempt to simultaneously integrate self-control, financial advisors, and financial dispute into investigation compared to the literature. In the first two years, I will use a unique dataset from the 2011 Literacy Survey conducted by Taiwan’s Financial Supervisory Commission while controlling for cognitive factors such as financial literacy and demographic factors and attempt to answer three crucial questions: First, what is the relationship between non-cognitive factors related to self-control and the demand for financial advisement? Second, is trust an essential factor in an individual’s decision to defer to financial advice? Third, what will mediate the relationship between financial advisement and financial disputes? In the last year, I will present a number of additional analyses to verify the robustness of the main empirical results of the above issues. The robustness checks involve: (i) the potential endogeneity of financial literacy and the potential endogeneity of trust towards of financial literacy.