Roberto Casarin, Niccolò Casnici, Pierpaolo Dondio, Flaminio Squazzoni

Back to Basics! The Educational Gap of Online Investors and the Conundrum of Virtual Communities

  • Article
  • pp. 51-69
  • DOI: 10.12831/80530
  • Abstract

Keywords: Online Investors; Sociology of Finance; Virtual Communities; Learning, Risk Propensity; Educational Gap.

This paper presents a survey on a sample of online investors in a virtual community in Italy. The survey aims to understand what this new type of investor is like - subjects studied range from occasional to independent and semi-professional investors - and it examines the implications emanating from their online exposure. By looking at motivation, risk propensity, education and online experience, we found that knowledge sharing and learning in virtual communities cannot compensate for the financial education-gap of these investors. Secondly, results showed that online exposure tends to increase investors' propensity for risk, which in turn does not guarantee better portfolio performance. Only a robust education level and more trading experience were found to promote good portfolio performance, and help investors to keep risk under control. Our results cast serious doubts about the mantra of online knowledge generation, and calls for urgent initiatives to improve the financial literacy of online investors.

Prima pagina articolo
Post your comment:
In order to submit your comment, you have to register, filling out the fields below. If you are already registered, please login.
* Indicates a required field
Insert first name and last name. Example: John Smith
This address is used to authenticate your account should you ever encounter problems or forget your password.
Type the characters you see in the picture
In qualità di Interessato, dichiaro di aver preso visione dell'informativa privacy, e acconsento al trattamento dei miei dati personali per le finalità indicate:
The use of this site is under a Legal notice, that I have completely read and with which I full agree [].
According to the art. 1341 c.c., authorized user explicitly agrees to the terms of Legal notice to the points: 6, 7, 8 and 9.