Decomposing the Age Effect on Risk Tolerance
By Rui Yao, Deanna L. Sharpe, Feifei Wang. 2011
158 citations recorded by the source corpus.
The importance of investment portfolio allocation has become more apparent since the onset of the late 2000s Great Recession. Individual willingness to take financial risks affects portfolio decisions and investment returns among other factors. Previous research found that people of different ages have dissimilar levels of risk tolerance but the effects of generation, period, and aging were confounded. Using the 1998–2007 Survey of Consumer Finances cross-sectional datasets, this study uses an analytical method to separate such effects on financial risk tolerance. Aging and period effects on financial risk tolerance were statistically significant. Implications for researchers and financial planning practitioners and educators are provided.
Subfields: Accounting, Demography, Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/a03ec332365ac55c8c26b938e06c7835e6f91387
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In Accounting
In Demography
In Economics and Econometrics
Citations in the corpus
- Retail investors' financial risk tolerance and their risk-taking behaviour: The role of demographics as differentiating and classifying factors (2015, background): “This increased the financial vulnerability of investors (Bricker et al., 2011; Yao et al., 2011).”