The Effect of Advanced Age and Equity Values on Risk Preferences

Blanchett, David; Finke, Michael; Guillemette, Michael A.

doi:10.1080/15427560.2018.1431884

Cited by 14 publications

(16 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Arrondel et al (2010) said that investors have tendecy to lower their risk tolerance when the market is illiquid. Blanchett et al (2018) found older investors change their risk tolerance levels when the S&P 500 index prices change. If the prices are volatile or bid-ask spread is big, the market liquidity decreases and the investors shape their risk tolerance levels.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, Arrondel et al (2010) and Blanchett et al (2018) showed the market liquidity can change the risk tolerance level, as well.…”

Section: Research Problems and Hypothesis Of The Studymentioning

confidence: 99%

“…Beyond those two different approaches, some studies concluded the liquidity can change the risk tolerance as well. Arrondel et al (2010) and Blanchett et al (2018) showed the market liquidity may change the investors' risk tolerances, as well.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Yatirimci Ri̇sk Toleransi Ve Pi̇yasa Li̇ki̇di̇tesi̇ İli̇şki̇si̇: Seçi̇li̇ Pi̇yasalardan Bulgular

ÇİFÇİ

Reis

2021

Hitit Sosyal Bilimler Dergisi

View full text Add to dashboard Cite

This study searched in what ways the stock market liquidity and the investor risk tolerance has a relation over the developed and developing countries. Seven developed and six developing countries were selected from the International Monetary Fund's counrty list for the sample. Dataset was consisted of the stock markets' weekly data. Some interesting results were found. The investors' risk tolerance and the market liquidity had a long-run relation in the all markets. The variables changed together. However, the cointegration regression coefficients were not same in the markets. The coefficients could be estimated just for the USA, UK and Indonesia within the confidence intervals.Neverthlessly, the variables did not have any short-run relation in spite of the long-run relation. Those results implied other variable(s) may cause a long-run relation between the tolerance and liquidity. Also, the variable(s) may affect the markets in different strength. It caused a positive and different degree relation in the USA and UK, while it was negative in Indonesia.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

“…However, Arrondel et al (2010) and Blanchett et al (2018) showed the market liquidity can change the risk tolerance level, as well.…”

Section: Research Problems and Hypothesis Of The Studymentioning

confidence: 99%

See 1 more Smart Citation

Yatirimci Ri̇sk Toleransi Ve Pi̇yasa Li̇ki̇di̇tesi̇ İli̇şki̇si̇: Seçi̇li̇ Pi̇yasalardan Bulgular

ÇİFÇİ

Reis

2021

Hitit Sosyal Bilimler Dergisi

View full text Add to dashboard Cite

show abstract

“…Younger individuals may be less sensitive to changing their portfolios in crises than older households. For example, younger household are less risk-averse (Blanchett, Finke, andGuillemette, 2018, Back, Liu, andTeguia, 2019), thus implying a lower incentive to flee to safety when responding to crisis shocks. In addition, they are in the early stage of family, home, and career building, which may imply that the ratio of expenditure to household income is high.…”

Section: Figure 1 Herementioning

confidence: 99%

Crisis Impact on the Diversity of Financial Portfolios - Evidence from European Citizens

Schaefer

Stöckel²,

Weser

2020

SSRN Journal

View full text Add to dashboard Cite

Since the 2008 Lehman bankruptcy, it is clearly shown that global economic and financial crises present major challenges to private households, requiring from them, a high level of shock absorption capacity. According to the old adage, "Do not put all the eggs in one basket", resilience depends, to a large extent, on financial diversification. So far, especially for Europe, little is known about whether and how the Global Financial Crisis (GFC) affected the diversity of private households' investment portfolios. We tackle this research gap and explore the impact of the GFC on portfolio diversity of European private households. Our European focus complements Sierminska and Silber (2019) who explore the diversification behaviour of US households after the Lehman insolvency. Our study reveals a significant decrease in the diversity of financial portfolios. This finding is robust across distinct model specifications. In response to the GFC, evidence suggests that European households adjusted the diversity of their financial portfolio in the opposite directions to that of US households.

show abstract

“…An early meta‐analysis suggested that age has little effect on preferences for explicit outcome probabilities (Mata, Josef, Samanez‐Larkin, & Hertwig, ). However, more recent studies indicate that aging is associated with greater risk aversion in the gain domain (Blanchett, Finke, & Guillemette, ; Grubb, Tymula, Gilaie‐Dotan, Glimcher, & Levy, ; Mata, Josef, & Hertwig, ; Mather et al, ; Tymula, Belmaker, Ruderman, Glimcher, & Levy, ), but less risk aversion (i.e., greater risk seeking) in the loss domain (Tymula et al, ; Mather et al, ; however, see Kurnianingsih, Sim, Chee, & Mullette‐Gillman, ). Thus, for risky decisions, older adults appear to exhibit a magnification of the domain‐based biases exhibited by younger adults (the reflection effect ; Kahneman & Tversky, , ).…”

Section: Valuation and Choicementioning

confidence: 99%

Neural mechanisms of decision‐making in aging

Lighthall

2019

WIRES Cognitive Science

View full text Add to dashboard Cite

The present review synthesizes findings on decision neuroscience and aging by focusing on decision processes that have been extensively studied in neuroeconomics and critically assessing the driving mechanisms of age‐related change. The paper first highlights age‐related changes to key brain structures that have been implicated in decision‐making, then, reviews specific decision components and discusses investigations of age‐related changes to their neural mechanisms. The review also weighs evidence for organic brain aging versus age‐related changes to social and psychological factors in mediating age effects. Reviewed findings are discussed in the context of theories and frameworks that have been used to explain trajectories of change in decision‐making across adulthood. This article is categorized under: Psychology > Development and Aging Psychology > Reasoning and Decision‐Making Neuroscience > Cognition

show abstract

The Effect of Advanced Age and Equity Values on Risk Preferences

Cited by 14 publications

References 20 publications

Yatirimci Ri̇sk Toleransi Ve Pi̇yasa Li̇ki̇di̇tesi̇ İli̇şki̇si̇: Seçi̇li̇ Pi̇yasalardan Bulgular

Yatirimci Ri̇sk Toleransi Ve Pi̇yasa Li̇ki̇di̇tesi̇ İli̇şki̇si̇: Seçi̇li̇ Pi̇yasalardan Bulgular

Crisis Impact on the Diversity of Financial Portfolios - Evidence from European Citizens

Neural mechanisms of decision‐making in aging

Contact Info

Product

Resources

About