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A Cross Cultural Test of Financial Risk Tolerance Attitudes: Brazilian and American Similarities and Differences

Author

Listed:
  • Liana Holanda N. Nobre

    (Federal Rural University of the Semiarid Region - UFERSA, Brazil,)

  • John E. Grable

    (University of Georgia, USA)

  • Wesley Vieira da Silva

    (Pontifical Catholic University of Paran - PUCPR, Brazil,)

  • Claudimar Pereira da Veiga

    (Pontifical Catholic University of Paran - PUCPR, Brazil)

Abstract

The purpose of this study was to examine the extent to which risk-tolerance attitudes differ between a sample of Brazilians and Americans (N=620). Based on the use of a variety of statistical methodologies, including regression, factor, and discriminant analysis. The results indicate that Americans were more apt to engage in a speculative gamble and they were less likely to hold bonds as a safe asset. Overall, both Brazilian and American female respondents exhibited lower risk-tolerance scores; however, no age or marital status differences were noted. The results from this analysis show that cultural differences exist between Brazilians and Americans in terms of financial risk-tolerance attitudes.

Suggested Citation

  • Liana Holanda N. Nobre & John E. Grable & Wesley Vieira da Silva & Claudimar Pereira da Veiga, 2016. "A Cross Cultural Test of Financial Risk Tolerance Attitudes: Brazilian and American Similarities and Differences," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 314-322.
    • Handle: RePEc:eco:journ1:2016-01-41
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    References listed on IDEAS

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    Cited by:

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    2. Ela Ostrovsky-Berman & Howard Litwin, 2019. "Social Network and Financial Risk Tolerance Among Investors Nearing and During Retirement," Journal of Family and Economic Issues, Springer, vol. 40(2), pages 237-249, June.
    3. Dee Warmath & Pan‐Ju Chen & John Grable & Eun Jin Kwak, 2021. "Soft landings: Extending the cushion hypothesis to financial well‐being in collectivistic cultures," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(4), pages 1563-1590, December.
    4. Kodad Rajaa & Jingfeng Yuan & Lei Zhang & Junwei Ma & Lei Zhang, 2021. "External Factors Affecting Investment in Overseas Electric Power Projects," Springer Books, in: Gui Ye & Hongping Yuan & Jian Zuo (ed.), Proceedings of the 24th International Symposium on Advancement of Construction Management and Real Estate, pages 1455-1472, Springer.
    5. Omar A. A. Jawabreh & Rami Muneer Mahmoud & Ehab Alshatnawi & Emran Al Momani, 2017. "Using Financial Analysis Methods in the Hotel Sector for the Purposes of Planning and Monitoring Case Study Al Zaitonia Hotel," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 162-173.
    6. Naveed Hussain Shah & Waqar Khalid & Saifullah Khan & Muhammad Arif & Muhammad Asad Khan, 2020. "An Empirical Analysis of Financial Risk Tolerance and Demographic Factors of Business Graduates in Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 220-234.

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    More about this item

    Keywords

    Risk Tolerance; Cross Cultural; Financial Risk;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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