scholarly journals Financial Market Participation Of Immigrants And Native-Born Americans: The Role Of Income Uncertainty

2011 ◽  
Vol 8 (5) ◽  
Author(s):  
Swarn Chatterjee
Keyword(s):  
Financial Market ◽  
The United States ◽  
Risk Tolerance ◽  
Individual Investors ◽  
Financial Asset ◽  
Asset Ownership ◽  
Market Participation ◽  
Income Uncertainty ◽  
Financial Market Participation

This paper uses the National Longitudinal Survey dataset to examine the role of income uncertainty in explaining the likelihood of financial asset ownership among native-born and immigrant Americans. After controlling for a number of socioeconomic, demographic and behavioral factors, the results suggest that individual investors who face greater income uncertainty are less likely to own financial assets. This relationship holds true for immigrants and native-born Americans. Additionally, the likelihood of financial asset ownership increases with income, risk tolerance, and educational attainment for immigrants as well as for natives. Results also suggest that financial market participation among immigrants increases with the number of years they remain in the United States.

Retail Investors’ Financial Risk Tolerance and Risk-taking Behaviour: The Role of Psychological Factors

2021 ◽  
pp. 231971452110582
Author(s):  
Pragati Hemrajani ◽  
Rajni ◽  
Rahul Dhiman
Keyword(s):  
Risk Taking ◽  
Psychological Factors ◽  
Structural Equation ◽  
Financial Risk ◽  
Risk Tolerance ◽  
Individual Investors ◽  
Financial Advisors ◽  
Research Model ◽  
Financial Risk Tolerance

The aim of this article is to look at how two psychological factors affect financial risk tolerance (FRT) and financial risk-taking behaviour (FRB) of individual investors. The study also investigates the role of FRT in mediating the relationship between psychological factors and FRB. A standardized questionnaire was used to collect the information. For the study, a total of 303 completed questionnaires were used. The proposed research model was validated and assessed using partial least squares structural equation modelling. The findings revealed some important experiences. Emotional intelligence and impulsiveness have a significant relationship with both FRT and FRB, according to the results. The findings also support FRT’s position as a mediating factor in the proposed research model. The results emphasize the importance of psychological factors in determining an individual’s FRT and FRB. FRT is a complex mechanism that entails more than just psychological considerations. As a result, further research is needed to decide which additional factors financial advisors can use to increase the explained variance in FRT inequalities.

scholarly journals Modification of Personal Investment Tools from the Perspective of Digital Finance and Its Influence on Ukrainian Finance Market

2021 ◽  
Vol 6 (521) ◽  
pp. 205-212
Author(s):  
V. O. Melnyk ◽  
Keyword(s):  
Financial Market ◽  
Financial Services ◽  
Individual Investors ◽  
Financial Instruments ◽  
Finance Industry ◽  
Current State ◽  
Personal Investment ◽  
Brokerage Service ◽  
Effective Use

Drastic changes in the financial services market under the influence of digitalization determine the relevance of research of the modern structure of this market, taking into account the emergence and development of the FinTech innovations. The increase in new investment instruments is attracting the attention of an increasing number of individual investors in the digital finance industry. Considering these tools, the preferences of individual investors require a separate study. The article is aimed at studying the financial market in digital finance and analyzing such types of investments as cryptocurrencies and crowdfunding, as well as the characterizing the online brokerage as a way to obtain investment services among individual investors. As a result of the study, the place and role of cryptocurrencies, crowdfunding and online brokerage in the investment activities of individuals is substantiated; the main mechanisms of work of these financial instruments are allocated and features of their development in Ukraine are characterized. The main disadvantages and advantages of crowdfunding and cryptocurrencies are defined and further steps are proposed regarding the prospects for their development in Ukraine. In addition, the article analyzes the current state of functioning of the online brokerage service in Ukraine and proves the relevance of the allocation of these financial instruments at the legislative level. Prospects for further research in this direction are the analysis of other digital instruments of personal investments, as well as a detailed study of the specifics of functioning of crowdfunding, cryptocurrencies and online brokerage in Ukraine. For the more efficient functioning of investment instruments in the sphere of digital finance, as well as effective use in practical activities, it becomes necessary to closer define these concepts at the legislative level and to substantiate the specifics of their work in detail.

scholarly journals Individual Investors Perceptions On The Summary Annual Report: A Survey Approach

2011 ◽  
Vol 10 (3) ◽  
pp. 60 ◽  
Author(s):  
Marc J. Epstein ◽  
Moses L. Pava
Keyword(s):  
Annual Report ◽  
The United States ◽  
Financial Information ◽  
Annual Reports ◽  
Individual Investors ◽  
Corporate Communications ◽  
Survey Results ◽  
Sizeable Minority ◽  
Survey Approach

<span>As the role of institutional investors is being transformed, there is a tendency to overlook the needs of individual investors. Nevertheless, there are well over 30 million individual investors in the United States, and these numbers are growing rapidly. One area of particular concern is corporate communications. All investors, professional as well as non-professionals, should have access to financial information. However, annual reports, as currently issued, are often difficult to read and understand, and therefore lack communication value. A possible solution is the summary annual report (SAR), which has been designed to condense and simplify the traditional GAAP statements. To date, most U.S. Corporations have not adopted the new format, in part, out of a fear of negative shareholder reaction. Our survey results clearly indicate that annual reports, as they are currently issued, are difficult to understand for a sizeable minority of investors. One out of 4 investors reported that annual reports were so difficult to understand that they were of no substantial help in making investment decisions. Further, results show that a majority of respondents demand inclusion of further explanation of the financial information in less technical terms, and over a third would like to see SARs to the exclusion of full GAAP reports. Through the SAR, management has an opportunity to significantly improve corporate communications. WE strongly recommend that management continues to experiment with its format, design, and content.</span>

Asset ownership of recent immigrants: An examination of nativity and socioeconomic factors

2014 ◽  
Vol 8 (2) ◽  
pp. 141-152 ◽  
Author(s):  
Swarn Chatterjee ◽  
Jinhee Kim
Keyword(s):  
Human Capital ◽  
Household Income ◽  
The United States ◽  
Demographic Variables ◽  
Financial Asset ◽  
Financial Assets ◽  
Asset Ownership ◽  
Recent Immigrants ◽  
English Fluency ◽  
Nationally Representative

This study uses a nationally representative sample of newly legalized immigrants to the United States to investigate factors related to their financial and non-financial asset ownership. Our analysis examines the ownership of financial assets, homes, and businesses in association with human capital, acculturation, and other demographic variables. The results indicate that household income and English fluency are significant predictors of financial, housing and business asset ownership. Other demographic, human capital and acculturation factors have varying effects on asset ownership. Understanding these factors of asset ownership can be useful to practitioners, researchers, and policymakers in developing strategies that can help immigrants integrate into the host country’s society.

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