Abstract

http://ssrn.com/abstract=767125
 
 

References (65)



 
 

Citations (31)



 


 



Do Older Investors Make Better Investment Decisions?


George M. Korniotis


University of Miami

Alok Kumar


University of Miami - School of Business Administration

July 1, 2009

Review of Economics and Statistics, Forthcoming

Abstract:     
This paper examines the investment decisions of older individual investors. We find that older and experienced investors are more likely to follow "rules of thumb" that reflect greater investment knowledge. However, older investors are less effective in applying their investment knowledge and exhibit worse investment skill, especially if they are less educated, earn lower income, and belong to minority racial/ethnic groups. Overall, the adverse effects of aging dominate the positive effects of experience. These results indicate that older investors' portfolio decisions reflect greater knowledge about investing but investment skill deteriorates with age due to the adverse effects of cognitive aging.

Number of Pages in PDF File: 65

Keywords: Older individual investors, cognitive aging, investment experience, learning, rules of thumb, investment skill

JEL Classification: D14, G11, J14

Accepted Paper Series


Download This Paper

Date posted: March 20, 2006 ; Last revised: July 11, 2009

Suggested Citation

Korniotis, George M. and Kumar, Alok, Do Older Investors Make Better Investment Decisions? (July 1, 2009). Review of Economics and Statistics, Forthcoming. Available at SSRN: http://ssrn.com/abstract=767125

Contact Information

George M. Korniotis
University of Miami ( email )
P.O. Box 248094
Coral Gables, FL 33124-6552
United States
305-284-5728 (Phone)
Alok Kumar (Contact Author)
University of Miami - School of Business Administration ( email )
514 Jenkins Building
Department of Finance
Coral Gables, FL 33124-6552
United States
305-284-1882 (Phone)
HOME PAGE: http://moya.bus.miami.edu/~akumar
Feedback to SSRN


Paper statistics
Abstract Views: 10,814
Downloads: 2,799
Download Rank: 1,940
References:  65
Citations:  31
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.250 seconds