Financial Decisions of Minorities Post-2008

38 Pages Posted: 5 Aug 2017 Last revised: 26 Jan 2023

See all articles by Yosef Bonaparte

Yosef Bonaparte

University of Colorado at Denver - Department of Finance

Sarah Khalaf

College of Business Administration Kuwait University

George M. Korniotis

University of Miami - Department of Finance

Multiple version iconThere are 2 versions of this paper

Date Written: January 26, 2023

Abstract

We study the financial behavior of minorities over 2007-09. We find that after 2008 and compared to White Americans, African Americans and Hispanics have a higher propensity to increase risk tolerance, optimism, and allocations to risky assets and lower probability of exiting the stock market. These findings cannot be explained by changes in wealth or income, and we speculate that they may be due to the positive effects of the election of President Obama. Specifically, we find that the change in behavior by minorities from 2007 to 2009 is consistent with minorities updating their beliefs about future economic outcomes.

Keywords: Risk tolerance, optimism, stock ownership, asset allocation, wealth gap, SCF, presidential elections.

JEL Classification: D14, G11, J15

Suggested Citation

Bonaparte, Yosef and Khalaf, Sarah and Korniotis, George M., Financial Decisions of Minorities Post-2008 (January 26, 2023). Available at SSRN: https://ssrn.com/abstract=3013905 or http://dx.doi.org/10.2139/ssrn.3013905

Yosef Bonaparte

University of Colorado at Denver - Department of Finance ( email )

United States

Sarah Khalaf

College of Business Administration Kuwait University ( email )

University City
Shdadiya, Al Farwaniyah 12037
Kuwait

HOME PAGE: http://cbaweb.ku.edu.kw

George M. Korniotis (Contact Author)

University of Miami - Department of Finance ( email )

P.O. Box 248094
Coral Gables, FL 33124-6552
United States
305-284-5728 (Phone)

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