Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7296687 | Journal of Behavioral and Experimental Finance | 2016 | 13 Pages |
Abstract
We extend existing research that examines the impact of culture on risk tolerance. Using surveys completed by Chinese and American students, we find, consistent with previous studies, that Chinese students perceive themselves as more risk tolerant. However, we find that Chinese students are less consistent in matching their perceived tolerance levels with actual scores from a standard risk tolerance assessment. Further, we also examine mock portfolios created by the respondents and find no evidence that Chinese students create portfolios that are riskier than their American counterparts. Our findings suggest that differences in risk tolerance are at least partially a product of culture, but such differences may not always translate into actual investment decisions.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics, Econometrics and Finance (General)
Authors
Mark K. Pyles, Yongping Li, Shifang Wu, Steven D. Dolvin,