Business Education and Portfolio Returns

We provide evidence of a positive causal link between financial knowledge acquired through business education and returns on stock investments.

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Yigitcan Karabulut (Frankfurt School of Finance & Management)

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IWH, conference room and via Zoom

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Yigitcan Karabulut is an Associate Professor of Finance at Frankfurt School of Finance & Management, a Research Fellow of the Network for Studies on Pension, Aging and Retirement (Netspar), and a Network Associate of the Centre for Economic Policy Research (CEPR). His research interests are in the areas of household finance, behavioral finance, and empirical asset pricing.

We provide evidence of a positive causal link between financial knowledge acquired through business education and returns on stock investments. Using exogenous variation generated by admission thresholds to university business programs in Sweden, we document that early investments in financial sophistication causes individuals to invest significantly more in the stock market, to earn higher portfolio returns, and to end up accumulating higher levels of wealth. Investments in financial sophistication at the launch of economic life thus significantly alters the life cycle wealth profiles of individuals.

To join the lecture via ZOOM, please contact Afroza Alam.