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A Cross-Cultural Study in Risk Tolerance: Comparing Chinese and Americans

30 Pages Posted: 24 Oct 2006  

Jessie X. Fan

University of Utah

Jing Jian Xiao

University of Rhode Island

Date Written: December 2005

Abstract

In this research we compare the risk preference attitudes and behavior between a sample of 470 Chinese workers and a sample of 2,671 Americans from the Survey of Consumer Finances. Our findings show that Chinese in our sample are more risk tolerant than Americans in their financial decisions, both in attitudes and behavior. Alternative explanations such as a lack of knowledge about the relationship between risk and return among the current generation Chinese are also explored. Theoretical and practical implications of this research are discussed.

Keywords: risk tolerance, Cultural comparison, Chinese consumers, American consumers

Suggested Citation

Fan, Jessie X. and Xiao, Jing Jian, A Cross-Cultural Study in Risk Tolerance: Comparing Chinese and Americans (December 2005). Available at SSRN: https://ssrn.com/abstract=939438 or http://dx.doi.org/10.2139/ssrn.939438

Jessie X Fan (Contact Author)

University of Utah ( email )

225 S 1400 E AEB 228
Salt Lake City, UT 84112-0080
United States

HOME PAGE: http://www.fcs.utah.edu?~fan

Jing Jian Xiao

University of Rhode Island ( email )

Transition Center
Kingston, RI 02881
United States
401-874-2547 (Phone)
401-874-4020 (Fax)

HOME PAGE: http://www.uri.edu/hss/hdf/faculty/JingJXiao.htm

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