Financial advice: Who Exactly Follows It?

Liron Reiter-Gavish, Mahmoud Qadan, Joseph Yagil

Research output: Contribution to journalArticlepeer-review


Using data from about 290,000 household investment accounts, we provide a comprehensive analysis of the role of personal economic and demographic characteristics in determining the tendency to utilize financial advice. Our findings indicate that investors' sophistication level, captured using several proxies, is negatively correlated with the decision to follow the financial advice received. In addition, we find that individual differences such as age, gender and family status are strongly associated with the tendency to use the advice. The findings are robust under different distributions of the data. Finally, we also test how macroeconomic uncertainty affects the tendency to utilize financial advice. Our results demonstrate that higher levels of financial uncertainty are associated with less use of financial advice.

Original languageEnglish
Pages (from-to)244-258
Number of pages15
JournalResearch in Economics
Issue number3
StatePublished - Sep 2021

Bibliographical note

Publisher Copyright:
© 2021


  • Financial advice
  • Household finance
  • Investor literacy
  • Investor sophistication

ASJC Scopus subject areas

  • Economics and Econometrics


Dive into the research topics of 'Financial advice: Who Exactly Follows It?'. Together they form a unique fingerprint.

Cite this