7. CONCLUSIONS
7.2 Contributions
7.2.1 Contributions to Theory
Firstly, this dissertation develops and verifies a framework for exercising retirement investment choice decisions. Accordingly, the key factors determining to exercise retirement investment choice are identified. This research has expanded previous research into financial literacy area which primarily focused on general and basic financial literacy (Bateman et al., 2012; Hsiao & Tsai, 2018;
Lusardi & Mitchell, 2009; van Rooij et al., 2011) by inheriting instrument from Gallery et al. (2011) to measure more specific knowledge related to retirement investment choice at advanced financial literacy level. Consequently, this research also expands earlier literature by giving empirical evidence that basic financial literacy is positively significant with exercising retirement investment choice decisions while those who have higher advanced financial literacy level are more involved in making investment choice outcome with growth investing.
Secondly, this research has expanded earlier studies by considering pension knowledge factor in relation to exercising retirement investment choice decisions.
While prior literature has emphasized the role of financial literacy in investment decisions, this research finds the evidence that besides financial literacy, pension knowledge also plays an important role in making investment choice decisions for retirement.
Further, this research also discovers that employees who have taken advice from experts are more likely to exercise retirement investment choice outcome with growth investing option. This confirms choice theories that employees find retirement investment choice more attractive when they perceive and recognize that growth investing option in long-term period for retirement become more salient (Bordalo et al., 2013; Ferraro et al., 2005).
Generally, the findings show an extremely high demand for doing research into financial literacy, especially in the context of retirement investment choice decisions. In addition, by developing and employing its model, this research also defines the decisive role of financial literacy, pension knowledge and financial advice encouraging employees to make retirement investment choice decisions.
40 7.2.2 Contributions to Practice
First of all, these findings convince policy-makers of the need for designing financial literacy programs and offering long-term prospects of stimulating the development of financial literacy programs. This is because it is necessary for employees to perceive that their financial knowledge is inadequate for sophisticated financial problems and to motivate them to be confident about their basic financial knowledge to exercise investment choice for their retirement to improve financial wellbeing of the general population
The government and financial institutions are conscious of the need for employees to concern with their pension savings. Therefore, these findings may provide valuable information for those who take responsibilities for producing solutions to improve individuals’ knowledge related to pension and finance so individuals can make informed choice decisions that will influence their retirement and financial well-being.
The findings of this research should also be of interest to financial advice providers because this research finds that employees who have consulted with advisers have a propensity for participating in growth investing option. This finding suggests that more pragmatic approaches and efficient education campaigns for those looking for financial advice should be developed by financial institutions.
Generally, owing to several crucial policy implications revealed, the findings of this research identify an insufficiency of financial literacy which negatively impacts on investment decision-making, especially more complicated matters such as retirement investment choice. In addition, a shortage of sophisticated financial knowledge could prevent individuals from selecting retirement investment options. Hence, it can be inferred the leading role of financial education in the development of financial literacy.
7.2.3 Limitations and areas for further research
There are some limitations of this research. First, this research has relevant standard limitations in relation to cross-sectional survey questionnaire (Cavana et al., 2001). Second, as assessment of the representativeness of the sample likened to the population of Vietnamese employees reported in chapter 6, the sample was over-representation by these companies which have a website and details contact showing up on business directory.
For conducting further investigation, future research can examine individuals’
participation in progress regarding changes and frequencies of subsequent investment choice and their causes.
41
REFERENCES
[1] AGARWAL, S., AMROMIN, G., BEN-DAVID, I., CHOMSISENGPHET, S., & EVANOFF, D. D. (2015). Financial literacy and financial planning: Evidence from India. Journal of Housing Economics, 27, 4–21. https://doi.org/10.1016/j.jhe.
[2] AGARWALLA, S. K., BARUA, S. K., JACOB, J., & VARMA, J. R.
(2015). Financial Literacy among Working Young in Urban India. World Development, 67, 101–109. https://doi.org/10.1016/j.worlddev.
[3] BOISCLAIR, D., LUSARDI, A., & MICHAUD, P.-C. (2015). Financial literacy and retirement planning in Canada. Journal of Pension
Economics and Finance, 1–20.
https://doi.org/10.1017/S1474747215000311
[4] FORNERO, E. and MONTICONE, C. (2011). Financial literacy and pension plan participation in Italy. Journal of Pension Economics and Finance, 10, 547–564. https://doi.org/10.1017/S1474747211000473.
[5] GROHMANN, A. (2018). Financial literacy and financial behavior:
Evidence from the emerging Asian middle class. Pacific-Basin Finance Journal, 48, 129–143. https://doi.org/10.1016/j.pacfin.2018.01.007 [6] LUSARDI, A., & MITCHELL, O. S. (2007a). Baby Boomer retirement
security: The roles of planning, financial literacy, and housing wealth, Journal of Monetary Economics, 54(1), 205-224.
[7] LUSARDI, A., & MITCHELL, O. S. (2009). How Ordinary Consumers Make Complex Economic Decisions: Financial Literacy and Retirement Readiness. National Bureau of Economic Research Working Paper
15350. Available at:
http://www.nber.org/papers/w15350.pdf?new_window=1.
[8] LUSARDI, A., & TUFANO, P. (2015a). Debt literacy, financial experiences, and over indebtedness. Journal of Pension Economics and Finance, 14(4), 332–368. https://doi.org/10.1017/S1474747215000232 [9] VAN Rooij, M. C. J., LUSARDI, A., & ALESSIE, R. J. M. (2011a).
Financial literacy and retirement planning in the Netherlands. Journal of Economic Psychology, 32(4), 593–608. https://doi.org/10.1016/j.joep [10] VAN Rooij, M. C. J., LUSARDI, A., & ALESSIE, R. J. M. (2011b).
Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449-472.
[11] WOOLDRIDGE, Jeffrey. M. Econometric Analysis of Cross Section and Panel Data. 2nd ed. Massachusetts Institute of Technology, 2010.
ISBN 978-0-262-23258-6.
* For a full list of reference, please look at the Doctoral thesis document
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LIST OF PUBLICATIONS
Scientific articles indexed in Scopus (Author id: 57191189188) [1] Nguyen, T.A.N., Belas, J., Habanik, J., Schonfeld, J. (2017). Preconditions
of financial safety during lifecycle: the financial literacy and retirement planning in Vietnam, Journal of Security and Sustainability Issues 6(4):
627-636. http://doi.org/10.9770/jssi.2017.6.4 (8).
[2] Nguyen, T.A.N., Rozsa, Z., Belas, J., & Belassova, L. (2017). The effects of perceived and actual financial knowledge on regular personal savings:
Case of Vietnam. Journal of International Studies, 10(2), 278-291.
doi:10.14254/2071-8330.2017/10-2/19
[3] Nguyen, T.A.N. (2017). Financing Constraints on SMEs in Emerging Markets: Does Financial Literacy Matter? Review of Socio-Economic Perspectives, 2(2), pp. 53-65. ISSN 2149-9276.AE
[4] Belas, J., Nguyen, T.A.N., Smrčka, L., Kolembus, J., Cipovová, E. (2016), Financial Literacy of Secondary School Students. Case Study from the Czech Republic and Slovakia, Economics and Sociology, Vol. 9, No 4, pp.
191-206. DOI: 10.14254/2071-789X.2016/9-4/12
[5] Kombo, F., Nguyen, T.A.N. (2016). How Demographic Factors Determine Banking Satisfaction: Czech and Kenyan case study, Actual Problems of Economics, 183(9): 239-249. ISSN 1993-6788.AE
[6] Nguyen, T.A.N., Zoltan R. (2018). Financial Literacy and Financial Advice seeking for retirement investment choice case of Vietnam.
Scientific Papers of the University of Pardubice, Series D, Czech Republish (Accepted)
Conference papers (peer reviewed)
[7] Nguyen, T.A.N., Rozsa, Z., and Belas, J., (2017). The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam, International Conference on Finance and Performance of Firms in Science, Education and Practice, 26 – 27 of April, 2017, Tomas Bata University in Zlin, Czech Republic.
[8] Kuruppuge, R. H., Gregar, A. and Nguyen, T.A.N. (2017), Employee‘s Knowledge Management and Life Management: A Study of Knowledge Intensive Firms, 7th International Conference on Management, Education and Practice, 2017, Slovak University of Agriculture, Nitra, Slovakia.
[9] Nguyen, T.A.N. (2016). Basic Financial Literacy over Demographic Characteristics: A Study Commercial Banks’ Customers in Vietnam, Annual International Research Conference for PhD. Students and Young
43
Researchers (DOKBAT), Tomas Bata University in ZLIN, Czech Republic.
[10] Nguyen, T.A.N. (2016). The Impact of Demographic Characteristics on Financial Literacy: An Empirical Study in Commercial Banks' Customers. Paper presented at European Financial System 2016:
Proceedings of the 13th International Scientific Conference. Brno:
Masarykova univerzita, 2016, p. 508-516.
44
CURRICULUM VITAE
Nguyen Thi Anh Nhu
150 Stefanikova St. 76001 Zlin, Czech Republic
(+420) 773043180 nguyen@utb.cz
Financial Literacy Specialty
PhD candidate with a round three years conducting research on financial literacy and my background includes a deep understanding of personal finance area.
Experience teaching subjects related to personal finance at the university, writing scientific articles and participating research projects.
Education
PhD candidate, Major: Finance, Tomas Bata University in Zlin, Czech Republic (Oct. 2015 - Ongoing)
MSc in Applied Finance, University of Western Sydney, Australia (2009) BSc in Economics, HCMC Open University, Vietnam (2007)
BSc in Biological Chemistry, University of National Sciences, Vietnam National University – HCM City, Vietnam (2003)
Experience
Lecturer in Faculty of Finance and Banking, HCMC Open University, Vietnam (2011 to date)
- Subjects: Personal Finance; Financial Markets Applied Data Science with SPSS and Stata Specialization Project activities: from Oct. 2015 to Dec. 2018
- As a member: The Internal Grant Agency of FaME TBU No.
IGA/FaME/2015/025: The possibilities of the financial performance growth for commercial banks in the context of the credit risk of SME.
- As a member: The Internal Grant Agency of FAME TBU No.
IGA/FaME/2017/010: Financial Constraints on Economic Activities.
Deputy Project Manager, Dai Dong Tien Corporation, Vietnam (2009-2011) Investment officer, Hyundai Vina Motor Corporation, Vietnam (2005-2007)
Affiliations
HCMC Open University, Vietnam (http://www.ou.edu.vn)
Tomas Bata University in Zlin, Czech Republic (http://www.utb.cz/)
45
Nguyen Thi Anh Nhu, Ph.D.
Financial literacy and Its Impact on Retirement Investment Choice: An Investigation of Vietnamese Employees
Finanční gramotnost a její vliv na investování v rámci důchodu: Průzkum vietnamských zaměstnanců
Doctoral Thesis Summary
Number of copies: issued in electronic version 1st edition
Typesetting by: Nguyen Thi Anh Nhu
This publication has not been neither edited nor linguistically corrected.
Year of publishing 2018
ISBN 978-80-7454-814-7