PDF iconDownload This Paper
Open PDF in Browser
Add Paper to My Library
Permalink
Using these links will ensure access to this page indefinitely
Copy URL

Do Market Returns Influence Risk Tolerance? Evidence from Panel Data

Yao, R. & Curl, A. L. (2011). Do market returns influence risk tolerance? Evidence from panel data. Journal of Family and Economic Issues, 32(3), 532-544.

35 Pages Posted: 2 Mar 2016

See all articles by Rui Yao

Rui Yao

University of Missouri at Columbia - Department of Personal Finance Planning

Angela Curl

University of Missouri at Columbia-School of Social Work

Date Written: 2011

Abstract

This study used the 1992-2006 waves of the Health and Retirement Study to investigate changes in risk tolerance levels over time in response to stock market returns. Findings indicate that risk tolerance tends to increase when market returns increase and decrease when market returns decrease. Individuals who change their risk tolerance in this manner are likely to invest in stocks when prices are high and sell when prices are low. Researchers, employers, financial educators and practitioners should help investors overcome the bias of overweighting recent news of market performance.

Keywords: Cognitive bias, Health and Retirement Study, Longitudinal study, Multilevel analysis, Risk tolerance

Suggested Citation

Yao, Rui and Curl, Angela, Do Market Returns Influence Risk Tolerance? Evidence from Panel Data (2011). Yao, R. & Curl, A. L. (2011). Do market returns influence risk tolerance? Evidence from panel data. Journal of Family and Economic Issues, 32(3), 532-544., Available at SSRN: https://ssrn.com/abstract=2740080

Rui Yao (Contact Author)

University of Missouri at Columbia - Department of Personal Finance Planning ( email )

239 Stanley Hall
Columbia, MO 65211-7700
United States
573-882-9343 (Phone)
573-884-8389 (Fax)

HOME PAGE: http://pfp.missouri.edu/faculty_yao.html

Angela Curl

University of Missouri at Columbia-School of Social Work ( email )

709 Clark Hall
Columbia, MO Columbia 65211
United States
573-884-6043 (Phone)
573-882-8926 (Fax)

PDF iconDownload This Paper
Open PDF in Browser

Do you have a job opening that you would like to promote on SSRN?

Place Job Opening

Paper statistics

Downloads
74
Abstract Views
631
Rank
635,369
3 Citations
59 References
PlumX Metrics

Related eJournals