TY  - JOUR
T1  - Financial illiteracy and customer credit history
A1  - Santo, Danilo Braun
A1  - Netto, Humberto Gallucci
Y1  - 2020///
KW  - Brazil
KW  - Capitalization bond
KW  - Derogatory mark
KW  - Financial illiteracy
KW  - Financial literacy
KW  - Investment
KW  - Regression modelling
JF  - Revista Brasileira de Gestao de Negocios
VL  - 22
IS  - Special Issue
SP  - 421
EP  - 436
DO  - 10.7819/rbgn.v22i0.4058
L1  - file:///E:/jurnal/2023/j of economics and business/paper/Santos 2020 Financial_Illiteracy_and_custo.pdf
N2  - Purpose – We study how financial illiteracy affects the probability of a derogatory mark on the customer’s credit history. Design/methodology/approach – We use the National Survey on Financial Inclusion in Brazil together with information on financial instrument usage and spending provided by the head of the household. To estimate the impact of financial illiteracy on the probability of a derogatory mark we use a logistic model to compute the odds ratio. Findings – Our main result is that financially illiterate individuals have between 57% and 143% more chance of having a derogatory mark. We find that age, income, expenses, and retirement positively affect the probability of a derogatory mark, while marriage has a negative impact. Gender does not have any impact over the probability of derogatory mark. Originality/value – The study uses a new proxy for financial illiteracy and correlates it to the investment and debt decisions of a family using a unique dataset.
ER  -