What Role Does Financial Risk Tolerance Play in Mediating Investing Behavior?
The present study offers an alternative explanation for the so-called gender and marital (cohabitation) status asset gap. The working hypothesis was that risk tolerance might have a mediation effect on investment behavior. Results show that financial risk tolerance significantly mediated the effects of gender on investment behavior. Similarly, risk tolerance played a small yet significant mediating role between cohabitation status and investment behavior. It is possible that what appears to be a gender or cohabitation status asset gap may be more closely related to differences in financial risk tolerance, regardless of gender or cohabitation status.
Journal of Financial Service Professionals
Society of Financial Service Professionals
Heo, Wookjae; Nobre, Liana Holanda N.; Grable, John E.; and Ruiz-Menjivar, Jorge, "What Role Does Financial Risk Tolerance Play in Mediating Investing Behavior?" (2016). Consumer Sciences Faculty Publications. 4.