scholarly journals Inter-Observer Risk-Tolerance Agreement Between Husbands And Wives

2011 ◽  
Vol 9 (2) ◽  
Author(s):  
Joseph W. Goetz ◽  
John Gilliam ◽  
John E. Grable
Keyword(s):  
Null Hypothesis ◽  
Financial Risk ◽  
Married Couples ◽  
Risk Tolerance ◽  
Survey Of Consumer Finances ◽  
Chi Square ◽  
Consumer Finances ◽  
Chi Square Analysis ◽  
Financial Risk Tolerance ◽  
Level Of Agreement

<p class="MsoBodyText" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: black; font-size: 10pt; mso-themecolor: text1;"><span style="font-family: Times New Roman;">The purpose of this research was to test the extent to which variability in husbands&rsquo; and wives&rsquo; self-assessed financial risk can be attributed to variation in risk tolerance or observer bias resulting from measurement error. Using a sample of 188 well-educated married couples, scores from the Survey of Consumer Finances single risk-assessment item were used to evaluate the following null hypothesis: Husbands and wives do not agree on their level of financial risk tolerance. The hypothesis was tested using a percentage agreement test, a Kappa coefficient test, and a chi-square analysis. Findings led to a rejection of the null hypothesis. That is, couples exhibited general agreement in their assessment of financial risk tolerance, although the level of agreement was rather modest. </span></span></p>

scholarly journals Do Employee Share Owners Face Too Much Financial Risk?

ILR Review ◽  
2021 ◽  
pp. 001979392110073
Author(s):  
Douglas Kruse ◽  
Joseph Blasi ◽  
Dan Weltmann ◽  
Saehee Kang ◽  
Jung Ook Kim ◽  
...  
Keyword(s):  
Financial Risk ◽  
Risk Tolerance ◽  
Risk Theory ◽  
Financial Knowledge ◽  
Survey Of Consumer Finances ◽  
Small Minority ◽  
Share Ownership ◽  
Consumer Finances ◽  
Substantial Problem ◽  
Excessive Risk

A major theoretical objection against employee share ownership is that workers are exposed to excessive financial risk. Theory posits that 10 to 15% of a typical worker’s wealth portfolio can be prudently invested in employer stock. The authors analyze employee share ownership in US family portfolios using the 2004 to 2016 Survey of Consumer Finances. Overall, 15.3% of families with private-sector employees held employer stock in 2016, and one in six of these families exceeded the 15% threshold. Employee share ownership appears to generally add to, rather than substitute for, both pension and overall wealth. Employee share owners express higher risk tolerance and financial knowledge and greater understanding of the value of diversification. While financial risk does not appear to be a substantial problem for most employee share owners, a small minority may face excessive risk, and the authors suggest approaches to reduce such risk.

scholarly journals A Cross-Cultural Comparison of Three Risk Tolerance Measures: Turkey and the United States Case

2014 ◽  
Vol 3 (1) ◽  
pp. 1-14 ◽  
Author(s):  
Jorge Ruiz-Menjivar ◽  
Amanda Blanco ◽  
Zeynep Copur ◽  
Michael S. Gutter ◽  
Martie Gillen
Keyword(s):  
United States ◽  
Financial Risk ◽  
Online Survey ◽  
The United States ◽  
Risk Tolerance ◽  
Cross Cultural ◽  
Bivariate Analysis ◽  
Chi Square ◽  
Chi Square Test ◽  
Financial Risk Tolerance

An individual’s attitude toward financial risk tolerance (FRT) is an important preference that influences financial decision-making under uncertainty. FRT involves inter-temporal resource allocation. Accurate and reliable measures of FRT are essential for professionals advising consumers as well as researchers who are trying to predict, and understand consumer behavior. This study explores cross-cultural risk tolerance by comparing random samples from Turkey, and the United States. Similar and distinctive attitudes and patterns regarding FRT are identified. Three subjective measures of FRT are employed in this study: Grable and Lytton (1999), Hanna, Gutter and Fan’s (2001) improved version of Barsky, Juster, Kimball and Shapiro (1997), and the Survey of Consumer Finance’s item on risk tolerance. Data was collected via an online survey that used the above-mentioned FRT measures. There were two versions: the original American English version, and a culturally translated Turkish version. To explore the correlation of FRT among measures, we use bivariate analysis by individually employing Pearson Chi-square test of independence, and cross tabulations analysis to each sample. In addition, by pooling both samples, we conduct cumulative logistic regression. We delineate FRT differences and consistencies between countries across subjective financial risk tolerance measures.

Demographic Variables, Delay Discounting Models and Dysfunctional Personality Traits as Predictors of Financial Risk-Tolerance Among Community-Dwelling Italian Adults

2021 ◽  
pp. 026010792110321
Author(s):  
Antonella Somma ◽  
Rebecca Sergi ◽  
Chiara Pagliara ◽  
Clelia Di Serio ◽  
Andrea Fossati
Keyword(s):  
Personality Traits ◽  
Linear Combination ◽  
Delay Discounting ◽  
Financial Risk ◽  
Short Form ◽  
Demographic Variables ◽  
Risk Tolerance ◽  
Community Dwelling ◽  
Self Report ◽  
Financial Risk Tolerance

To evaluate the effect of demographic variables, delay discounting and dysfunctional personality traits on financial risk tolerance (FRT), 281 community-dwelling adults were administered the Italian translations of the Risk-Tolerance Scale (RTS), Monetary Choice Questionnaire, Probability Discounting Questionnaire, and Personality Inventory for DSM-5-Short Form (PID-5-SF) self-report questionnaires through an online platform. Hierarchical robust regression results showed that the linear combination of demographic variables (gender and active worker status), delay discounting measures and selected PID-5-SF trait scale scores (i.e., Attention Seeking and Risk Taking) explained roughly 39% of the RTS total score. As a whole, our findings underscore the role of demographic characteristics, dysfunctional personality traits and delay discounting in FRT expression. As a result, FRT is likely to represent the linear combination of several factors that should be assessed in order to understand FRT and prevent erroneous choices among lay investors.

Personality, risk tolerance and social network use: an exploratory study

2016 ◽  
Vol 42 (6) ◽  
pp. 536-552 ◽  
Author(s):  
Shaista Wasiuzzaman ◽  
Siavash Edalat
Keyword(s):  
Social Networks ◽  
Social Network ◽  
Online Social Networks ◽  
Financial Risk ◽  
Ordinary Least Squares ◽  
Risk Tolerance ◽  
Network Activity ◽  
Least Squares Regression ◽  
Content Type ◽  
Financial Risk Tolerance

Purpose – The vast amount of information available via online social networks (OSN) makes it a very good avenue for understanding human behavior. One of the human characteristics of interest to financial practitioners is an individual’s financial risk tolerance. The purpose of this paper is to look at the relationship between an individual’s OSN behavior and his/her financial risk tolerance. Design/methodology/approach – The study uses data collected from a sample of 220 university students and the backward variables selection ordinary least squares regression analysis technique to achieve its objective. Findings – The results of the study find that the frequency of logging on to social network sites indicates an individual who has higher financial risk tolerance. Additionally, the increasing use of social networks for social connection is found to be associated with lower financial risk tolerance. The results are mostly consistent when the sample is split based on prior financial knowledge. Originality/value – To the authors’ knowledge this is the first study which documents the possibility of understanding an individual’s financial risk tolerance via his/her social network activity. This provides investment/financial consultants with more avenues for gathering information in order to understand their current or potential clients hence providing better services.

Impact of Behavioral Biases in Financial Risk Tolerance Ability of Mutual Fund Investors

2021 ◽  
Vol 7 (5) ◽  
pp. 2748-2765
Author(s):  
Nidhi Jain ◽  
Bikrant Kesari
Keyword(s):  
Mutual Fund ◽  
Financial Risk ◽  
Positive Impact ◽  
Investment Decision ◽  
Central India ◽  
Risk Tolerance ◽  
Behavioral Biases ◽  
Asset Class ◽  
Level Of Knowledge ◽  
Financial Risk Tolerance

Objective: The Behavioral bias is the term that deals with the investors’ psychology about their investment decision with their investment expertise. Every individual is biased, according to standard economic theory by his behavior and experiences which are rational. Methods: This research seeks to segregate mutual fund holders into various groups (persons and professionals) based on Behavioral biases and then investigates whether these Behavioral biases are influencing the level of knowledge of investors and the financial risk tolerance of certain mutual funds. Statistical tools compare investors characteristics and analyse how Behavioral biases are associated. Results: The factors analysed are financial circumstance, Type of Investors, Asset class preference, Time Horizon and Purpose of Investment. The primary information was gathered from 250 Central India mutual fund investors dependent on Judgment sampling. CFA, Correlation, MANOVA and Regression. Conclusions: Findings shows the effect of the behavior bias has positive impact on mutual fund investor awareness and financial risk tolerance.

The Risk Tolerance Measure in the 2016 Survey of Consumer Finances: New, But Is It Improved?

2021 ◽  
pp. JFCP-19-00022
Author(s):  
Kyoung Tae Kim ◽  
Sherman D. Hanna ◽  
Dongyue Ying
Keyword(s):  
Negative Relationship ◽  
Risk Tolerance ◽  
Stock Ownership ◽  
Survey Of Consumer Finances ◽  
Consumer Finances ◽  
Two Measures ◽  
Complex Patterns ◽  
Relationship Of ◽  
The Relationship ◽  
Different Levels

The Survey of Consumer Finances (SCF) has included a 4-level risk tolerance measure since 1983. In 2016, the SCF also included an 11-level risk tolerance measure. We compare the two measures, and develop suggestions for using the new measure. While the new measure is seemingly simpler than the old measure, we demonstrate that it does not have a monotonic relationship with owning stock assets, with a pattern similar to the relationship of the old measure to stock ownership. We also identify complex patterns of factors related to different levels of the new measure, for instance education has a negative relationship at one level but positive at another level. Those using the new measure should consider the complex patterns we demonstrate.

Nonlinear linkages between financial risk tolerance and demographic characteristics

2009 ◽  
Vol 16 (13) ◽  
pp. 1329-1332 ◽  
Author(s):  
Robert Faff ◽  
Terrence Hallahan ◽  
Michael McKenzie
Keyword(s):  
Financial Risk ◽  
Demographic Characteristics ◽  
Risk Tolerance ◽  
Financial Risk Tolerance
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