Savings and Investment Behaviour in Britain: More Questions than Answers

Burton, David

doi:10.1080/714005035

Cited by 7 publications

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“…In particular, Uhler and Cragg (1971) and Tin (1998) find that differences in income, age, and education explain a large portion of variation in number of different financial assets held by U.S. households; evidence from more recent studies supports this finding. See, e.g., Börsch-Supan and Eymann (2000); Burton (2001);Campbell (2006); Hochguertel et al (1997); King and Leape (1998). in our case.…”

Section: The Modelmentioning

confidence: 99%

“…Despite the predictions of CAPM, numerous empirical studies show that investorsand especially private households -often hold incomplete portfolios consisting of a few risk-free assets (Hochguertel et al, 1997;King and Leape, 1998;Börsch-Supan and Eymann, 2000;Burton, 2001;Campbell, 2006;Yunker and Melkumian, 2010). A great deal of empirical work is aimed at understanding why so many private investors hold underdiversified portfolios (Blume and Friend, 1975;Kelly, 1995;King and Leape, 1998;Benartzi and Thaler, 2001;Campbell et al, 2003;Gomes and Michaelides, 2005;Polkovnichenko, 2005;Goetzmann and Kumar, 2008).…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, numerous empirical studies find that portfolio composition varies significantly across investors and that a large portion of private investors hold under-diversified portfolios comprised of only a small subset of available assets (Hochguertel et al, 1997;King and Leape, 1998;Börsch-Supan and Eymann, 2000;Burton, 2001;Campbell, 2006;Yunker and Melkumian, 2010).…”

Section: Introductionmentioning

confidence: 99%

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Individual risk attitudes and the composition of financial portfolios: Evidence from German household portfolios

Barasinska

Schäfer

Stephan

2012

The Quarterly Review of Economics and Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. /dx.doi.org/10.1016/j.qref.2011.10.001 Terms of use: Documents inan article published in the Quarterly Review of Economics and Finance 52 (2012), 1, p. 1-14, available online at: http:/ INDIVIDUAL RISK ATTITUDES AND THE COMPOSITION OF FINANCIAL PORTFOLIOS: EVIDENCE FROM GERMAN HOUSEHOLD PORTFOLIOS AbstractThis paper explores the relationship between the self-declared risk aversion of private investors and their propensity to hold incomplete portfolios of financial assets. The analysis is based on household survey data from the German Socioeconomic Panel (SOEP) that provides a reliable measure of individual attitudes toward financial risk. Our findings suggest that more risk averse households tend to hold incomplete portfolios consisting mainly of a few risk-free assets. We also find that the propensity to acquire additional assets is highly dependent on whether liquidity and safety needs are met. JEL: D14, G11

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Section: The Modelmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Individual risk attitudes and the composition of financial portfolios: Evidence from German household portfolios

Barasinska

Schäfer

Stephan

2012

The Quarterly Review of Economics and Finance

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“…Accurately testing the relationship between risk aversion and portfolio diversification is not easy, chiefly due to problems with measuring risk aversion. In the majority of empirical studies, risk aversion is measured either 2 See, e.g., Campbell (2006), Bertaut and Starr-McCluer (2000) and King and Leape (1998) on the US; Henry, Odonnat and Ricart (1992) on France; Hochguertel, Alessie and Van Soest (1997) and Alessie, Hochguertel and Van Soest (2000) on Netherlands; Guiso and Jappelli (2000) on Italy; Banks and Smith (2000) and Burton (2001) on the UK; Himmelreicher (1998) and Börsch-Supan and Eymann (2000) on Germany.…”

Section: Previous Evidence On Determinants Of Household Portfolio DIVmentioning

confidence: 99%

Financial Risk Aversion and Household Asset Diversification

Barasinska

Schaefer

Stephan³

2008

SSRN Journal

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SOEPpapers on Multidisciplinary Panel Data Research at DIW BerlinThis series presents research findings based either directly on data from the German SocioEconomic Panel Study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science.The decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly. 1 Financial Risk Aversion and Household Asset DiversificationAbstract This paper explores the relationship between risk attitude and asset diversification in household portfolios. We first examine the impact of manifested risk aversion on the total number of distinct assets held in a portfolio (naive diversification). The second part of the paper focuses on a more sophisticated strategy of diversification and asks whether financial theory is compatible with observed diversification patterns. Based on the German Socioeconomic Panel which provides unique measures of individual propensity for taking risk, the results of the regression analysis show that, along with some socioeconomic characteristics, the propensity for taking investment risk is an important predictor of a household's diversification strategy. However, some of our findings are strongly at odds with what the concept of mean-variance utility suggests. JEL: D14, G11

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“…The application of demographic information in conjunction with psychographic factors is growing in importance as a basis for segmenting the market for financial services (Alfansi & Sargeant, 2000;Ansell, Harrison, & Archibald, 2007;Keller & Siegrist, 2006). This approach is pivotal in the segmentation of saving consumers because their proportion has fallen sharply in recent years (Burton, 2001;DeVaney, Anong, & Whirl, 2007;Fisher & Anong, 2012;Modisaatsone, 2013;Radipotsane, 2007). This compels researchers and practitioners who are interested in financial services marketing and education to study and monitor how people with different demographic, psychographic, and sociocultural characteristics save.…”

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confidence: 99%

Hybrid Segmentation in the Financial Services Market: Targeting Saving Consumers

Makgosa

Matenge

Mburu

2016

Family & Consum Sci Res J

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The purpose of this study was to demonstrate the usefulness of hybrid market segmentation by identifying segments (e.g., clusters) of consumers using a combination of psychographics, demographic information, and behavioral bases. A sample of 621 saving employed adults from Botswana completed a structured questionnaire at their place of work. Results revealed six segments that depicted unique saving motives, attitudes, and perceptions. The six segments were labeled as “anxious detached, prudent, carefree egoistical, anxious fanatical, pragmatic, and apathetic savers.” Further differences were examined among the segments based on personal values, life satisfaction, usage of saving programs, and demographic information. Results are useful for researchers and practitioners as an alternative approach for analyzing savers through the use of hybrid segmentation. Results such as these could facilitate marketing efforts to serve those who are most likely to save.

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Savings and Investment Behaviour in Britain: More Questions than Answers

Cited by 7 publications

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Individual risk attitudes and the composition of financial portfolios: Evidence from German household portfolios

Individual risk attitudes and the composition of financial portfolios: Evidence from German household portfolios

Financial Risk Aversion and Household Asset Diversification

Hybrid Segmentation in the Financial Services Market: Targeting Saving Consumers

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