The Risk Tolerance and Stock Ownership of Business Owning Households
Journal of Financial Counseling and Planning, Vol. 18, No. 2, 2007
Posted: 4 Mar 2013 Last revised: 28 Dec 2020
Date Written: 2007
Abstract
Data from the 1992-2004 Survey of Consumer Finances were used to examine the risk tolerance and stock ownership of three types of households: those that do not own a business, those that own and manage a business, and those that own but do not manage a business. Non-manager business owners were the most likely to be willing to take risks and to hold stocks. Manager-business owners were more willing to take risk than non-owners but were less likely to own stocks than otherwise similar non-owner households. Research on risk tolerance and stock ownership should consider business ownership to account for differences between the household types.
Keywords: business management, business ownership, risk tolerance, stock ownership, Survey of Consumer Finances
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