Household characteristics and the change of financial risk tolerance during the financial crisis in the United States

2017 ◽  
Vol 41 (5) ◽  
pp. 484-493 ◽  
Author(s):  
Tsun-Feng Chiang ◽  
Jing Jian Xiao
Keyword(s):  
United States ◽  
Financial Crisis ◽  
Financial Risk ◽  
The United States ◽  
Risk Tolerance ◽  
Household Characteristics ◽  
Financial Risk Tolerance

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.

scholarly journals The Influence Of Birth Order On Financial Risk Tolerance

2011 ◽  
Vol 9 (4) ◽  
pp. 43 ◽  
Author(s):  
John Gilliam ◽  
Swarn Chatterjee
Keyword(s):  
United States ◽  
Birth Order ◽  
Financial Risk ◽  
Risk Tolerance ◽  
Previous Literature ◽  
Southwestern United States ◽  
Gender And Education ◽  
First Time ◽  
Financial Risk Tolerance

This study examines birth order as a predictor of financial risk tolerance. Three hundred sixty-eight individuals, drawn predominantly from a large university in the Southwestern United States, completed a psychometrically sound financial risk tolerance measure (Grable and Lytton, 1999). The results confirmed previous literature in regard to gender and education as predictors of risk tolerance. However, for the first time, firstborn individuals were shown to be significantly less risk tolerant than later-born individuals. Furthermore, it was shown that later-born males were more likely than the first-born to have a majority of their portfolios allocated in stock; additionally the later-born males were more likely than the later-born females to hold a greater proportion of their assets in stocks.

A Global Perspective on Securitized Debt

2018 ◽  
Author(s):  
Steven L Schwarcz
Keyword(s):  
United States ◽  
Financial Crisis ◽  
Capital Market ◽  
Global Financial Crisis ◽  
The United States ◽  
Global Perspective ◽  
Capital Markets Union ◽  
The Global Financial Crisis ◽  
Asset Backed Securities ◽  
The Eu

Securitisation represents a significant worldwide source of capital market financing. European investors commonly invest in asset-backed securities issued in U.S. securitisation transactions, and vice versa One of the key goals of the European Commission's proposed Capital Markets Union (CMU) is to further facilitate securitisation as a source of capital market financing as a viable alternative to bank-based finance for companies operating in the EU. To that end, this chapter explains securitisation and attempts to put its rise, its decline after the global financial crisis, and its recent CMU-inspired revival into a global perspective. It examines not only securitisation's relationship to the financial crisis but also post-crisis comparative regulatory approaches in the EU and the United States.

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.

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