Kristjan Pulk will defend his doctoral thesis „Influencing personal financial decisions with information provision“

On 28 June at 14:00 Kristjan Pulk will defend his doctoral thesis „Influencing personal financial decisions with information provision“ for obtaining the degree of Doctor of Philosophy (in Economics)

Supervisors:
Professor Maaja Vadi, University of Tartu 
Lecturer Anne Aidla, University of Tartu

Opponents:
Professor Matti Keloharju,Aalto University, Finland
Professor Aaro Hazak, Tallinn University of Technology, Estonia

Summary
People often make financial decisions without thorough consideration. In Estonia, according to Eurostat's 2021 data, the proportion of people working in their retirement age is the highest in Europe (32.5%), while the average Estonian pension replaces 34% of pre-retirement income. Therefore, a significant part of Estonia's population has not prepared for retirement. Also, a large proportion (22%) of loans from non-bank lenders in Estonia are overdue, indicating that many credit decisions have not been well thought through. 

However, financial decisions have a significant impact on people's well-being and mental health. Myopia in money matters can also burden the state, as people relying on the state to support them in retirement puts a strain on the government budget, which would not be necessary for a more financially independent population. Therefore, it is important to consider how to help people make more considerate financial decisions, i.e., how to influence financial behaviour. 

The aim of the thesis is to provide an in-depth understanding of how information provision influences personal financial decisions. To fulfil the aim, three research papers published by the author are discussed. 

The thesis finds that the country context plays an important role in personal financial decisions, but the relationship between financial literacy and financial behaviour is unclear. Financial literacy does not explain credit behaviour to a sufficient extent, but information provision can be effective in influencing behaviour. However, the effect is varied and may not always appear. Therefore, recipient segmentation and message personalisation are important. 

The doctoral thesis contributes to the literature by providing a better understanding of why people may not make financial decisions based on their financial knowledge. The thesis outlines four recommendations for influencing financial behaviour, including increasing responsible lending and encouraging investment behaviour.

The defence will be held in Narva Rd. 18–1018 and online

Thesis: https://hdl.handle.net/10062/99167