Readability, Financial Literacy, and the Reliance of Investors
Abstract
reading something easily comprehensible. Past research also shows that more financially literate investors process financial information differently from their less financially literate counterparts: the former is mediated by both processing fluency and understanding of the information, while the latter is mediated by processing fluency only. I predict and find that less financially literate investors—who are influenced to a greater degree by changes in processing fluency—would also be more sensitive to changes in readability levels.
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PDFDOI: http://dx.doi.org/10.3968/8081
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