Abstract

The study examines links between automated advisory services and irrational individual investors’ behaviour based on dual-process theory. The study contributes to the literature on active vs. passive digital nudges in robo-advisors and the disposition effect. Self-reporting online experiment revealed that robo-advisors help investors to resolve cognitive dissonance, with passive robo-advisors being more efficient. We contribute by introducing and indicating the moderating role of financial literacy. Though moderating feminine gender role was not supported, the need for customized automated advisory services is highlighted. The results are important for individual welfare, as demographic shifts and evolving retirement systems transfer investment decisions to individuals.

Details

Title
Passive vs active robo-advisors and disposition effect. Moderating role of gender and financial literacy
Author
Lisauskiene, Nomeda 1   VIAFID ORCID Logo  ; Darskuviene, Valdone 1   VIAFID ORCID Logo  ; Butkus, Mindaugas 2   VIAFID ORCID Logo 

1  Economics faculty, ISM University of Management and Economics, Vilnius, Lithuania 
2  Faculty of Economics and Management, Vytautas Magnus University, Kaunas, Lithuania 
Pages
239-260
Publication year
2024
Publication date
Dec 2024
Publisher
Taylor & Francis Ltd.
ISSN
1406099X
e-ISSN
23344385
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.1080/1406099X.2024.2422673
ProQuest document ID
3135017670
Copyright
© 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This work is licensed under the Creative Commons Attribution License http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.