Racial differences in investor decision making

Authors

  • Michael S. Gutter The Ohio State University, 1787 Neil Avenue, Columbus, OH 43210-1295, USA
  • Jonathan J. Fox The Ohio State University, 1787 Neil Avenue, Columbus, OH 43210-1295, USA
  • Catherine P. Montalto The Ohio State University, 1787 Neil Avenue, Columbus, OH 43210-1295, USA

DOI:

https://doi.org/10.1016/S1057-0810(99)00040-2

Keywords:

Risky assets, Racial differences, Portfolio allocation, Life cycle models, Individual investing

Abstract

Racial differences in investment behavior are investigated using data from the 1995 Survey of Consumer Finances. Socioeconomic, financial, and attitudinal variables are incorporated in a life-cycle savings model. The impact of all variables is allowed to differ between Black households and White households to understand racial differences in risky asset ownership. We determine that observed racial differences in risky asset ownership are explained by racial differences in the individual determinants of risky asset ownership, not by race in and of itself. Specifically, these differences seem to center on the impact of children and household size. © 2000 Elsevier Science Inc. All rights reserved.

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Published

1999-09-30

How to Cite

Gutter, M. S., Fox, J. J., & Montalto, C. P. (1999). Racial differences in investor decision making. Financial Services Review, 8(3), 149–162. https://doi.org/10.1016/S1057-0810(99)00040-2

Issue

Vol. 8 No. 3 (1999): Financial Services Review

Section

New Original Submission

License

Copyright (c) 1999 JAI Press Inc.

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