Change search
ReferencesLink to record
Permanent link

Direct link
Lay actions in the face of crisis-Swedish citizens' actions in response to the global financial crisis of 2008
KTH, School of Architecture and the Built Environment (ABE), Centres, Centre for Banking and Finance, Cefin.ORCID iD: 0000-0003-4394-4020
KTH, School of Architecture and the Built Environment (ABE), Philosophy and History of Technology, Philosophy.ORCID iD: 0000-0002-4671-758X
2012 (English)In: The Journal of Socio-Economics, ISSN 1053-5357, Vol. 41, no 6, 796-805 p.Article in journal (Refereed) Published
Abstract [en]

This study goes beyond attitudes and behavioral indications as response to risk perceptions and focuses on actual behavior of laypeople. We report the results from a survey, conducted among a sample of Swedish citizens in the spring of 2009, looking at lay actions as responses to the financial crisis of 2008. In total, 3138 respondents were asked whether they had done something to protect their money during the recent financial crisis or not. The total sample, 1053 respondents, was divided into two comparable groups and a binary logistic regression tested a model with nine factors hypothesized to be predicting the choice to act or not as a response to the financial crisis. Among the eight factors predicting likelihood to act were gender, age, education, ethnicity, possession of assets affected of the financial crisis, worrying about the everyday household finances, the perception of others' actions, and importance put on being knowledgeable and up-dated about financial matters. The ninth factor-respondents' perception of the crisis to be a greater threat to the U.S. and global economy than to their own personal finances-did not contribute significantly to the model.A second aim of the study was to determine whether any individuals acted rashly and, if so, whether this group differed in any statistically significant way from the group of individuals that acted in a more financially circumspectly manner. In the group of individuals that acted rashly there is a higher propensity of: individuals who do not think they have assets affected by the crisis: individuals who have a lower level of education; and individuals who consider it important to be knowledgeable and up-to-date about financial matters. It should be of interest to policymakers and researchers to further explore features of this group of laypeople because it is the most important target group for consumer information and protection.

Place, publisher, year, edition, pages
2012. Vol. 41, no 6, 796-805 p.
Keyword [en]
Action, Financial crisis, Laypeople, Logistic regression, Risk perception
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-115489DOI: 10.1016/j.socec.2012.08.007ScopusID: 2-s2.0-84871720759OAI: diva2:588402

QC 20130115

Available from: 2013-01-15 Created: 2013-01-15 Last updated: 2013-01-17Bibliographically approved
In thesis
1. Financial Advisory Services: Exploring relationships between consumers and financial advisors
Open this publication in new window or tab >>Financial Advisory Services: Exploring relationships between consumers and financial advisors
2013 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The need for more knowledge about different aspects of financial advisory services has been highlighted by scholars of many disciplines, and calls for more in-depth studies of this practice have been put forward. The purpose of this thesis is to answer this call and, thereby, enhance knowledge about financial advisory services and the provision and receipt of advice occurring in a face-to-face encounter between a professional advisor and a consumer. The thesis consists of five papers in which different methodological and theoretical lenses are applied to the study of the practice. A mixed methods approach is applied to the object of study—financial advisory services. This approach entails using qualitative methods to analyze video-recorded interviews and quantitative methods to analyze survey data. The qualitative methods are used primarily to generate new constructs and ideas, whereas quantitative methods are used more to confirm and deepen the knowledge of constructs and relationships.

The findings show that there are important aspects of financial advisory services that have been previously neglected. The characteristics of both consumers and advisors, as tested from the aspect of gender, are shown to have importance for both consumer and advisor perceptions of different aspects of core elements of financial advisory services. Focusing on the micro-foundations of the relationship between customer and advisor in financial advisory services reveals the importance of mirroring for customers in perceiving a relationship. Two types of interactions that customers do not consider to be relationships are identified. Scholars have referred to occasions in which customers are too trusting as “the dark side of trust”, meaning that the customer becomes less actively involved in the relationship with increasing advisor trust.  Applying a concept borrowed from psychotherapy—working alliance—has opened up possibilities for further exploration of the inner workings of the financial advisory session. This thesis proposes and tests the concept of a working alliance as a way of enhancing theory and, thereby, the understanding of relationships between consumers and service providers.

The results of this thesis have implications for theory by contributing to the understanding of relationships. The implications for policymakers, the industry, and advisors and customers are many. Exploring the practice of financial advisory services lays the groundwork for discussions on, and elaborations of, regulations, educational programs, and hiring practices within the industry, as well as on financial literacy programs directed toward consumers.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2013. 114 p.
TRITA/KTH/CEFIN-DT, ISSN 1654-9376 ; 07
financial advice, conusmer finance, financial services, financial decisioin making, risk perception, relationship, working alliance
National Category
Business Administration
urn:nbn:se:kth:diva-116207 (URN)
Public defence
2013-01-25, D1, Lindstedtsvägen 17, KTH, Stockholm, 14:00 (Swedish)

QC 20130117

Available from: 2013-01-17 Created: 2013-01-16 Last updated: 2013-01-18Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full textScopus

Search in DiVA

By author/editor
Söderberg, Inga-LillWester, Misse
By organisation
Centre for Banking and Finance, CefinPhilosophy
In the same journal
The Journal of Socio-Economics
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 24 hits
ReferencesLink to record
Permanent link

Direct link