Work

The Financial Risk Tolerance of Blacks, Hispanics and Whites

Year: 2005

Type: article

Abstract: This article focuses on the effect of race and ethnicity on financial risk tolerance. Blacks and Hispanics are less likely to be willing to take some financial risk but more likely to be willing to take substantial financial risk than Whites, after controlling for the effects of other variables. Risk attitudes may affect investment behavior, so having an appropriate willingness to take financial risk is important in achieving investment goals. Government agencies and financial educators should target investor education on investments and financial risk to racial and ethnic groups in order to promote better choices for investing for financial goals.

Authors: Rui Yao, Michael S. Gutter, Sherman D. Hanna

Institutions: South Dakota State University, University of Missouri, University of Wisconsin–Madison, The Ohio State University

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: green

OpenAlex ID: W2161950243

FWCI: 5.636

Cites: 41

Cited by: 104

Related to: 10