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Implication of stigmatization on investors financial risk tolerance: The case of gay men

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  • Beer, Francisca M.
  • Wellman, Joseph D.

Abstract

This study evaluates whether the salience of discrimination and perceived stigmatization influence gay men’s financial risk tolerance (FRT). This evaluation is conducted using the FRT measure of Grable and Lytton (1999), a “two-study ruse” approach and a hierarchical linear regression model. The findings show that individuals with anticipated stigmatization, after being exposed to information about bias against their community, exhibited greater FRT. These results support the hypothesis that risk-taking behavior by members of stigmatized populations increases when they experience discrimination.

Suggested Citation

  • Beer, Francisca M. & Wellman, Joseph D., 2021. "Implication of stigmatization on investors financial risk tolerance: The case of gay men," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    • Handle: RePEc:eee:beexfi:v:31:y:2021:i:c:s2214635021000575
    DOI: 10.1016/j.jbef.2021.100513
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    References listed on IDEAS

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    1. Yao, Rui & Sharpe, Deanna L. & Wang, Feifei, 2011. "Decomposing the age effect on risk tolerance," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 879-887.
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    4. Grable, John & Lytton, Ruth H., 1999. "Financial risk tolerance revisited: the development of a risk assessment instrument," Financial Services Review, Elsevier, vol. 8(3), pages 163-181.
    5. Adem Anbar & Melek Eker, 2010. "An Empirical Investigation for Determining of the Relation Between Personal Financial Risk Tolerance and Demographic Characteristic," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 10(2), pages 503-522.
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    Cited by:

    1. Brahma, Sanjukta & Gavriilidis, Konstantinos & Kallinterakis, Vasileios & Verousis, Thanos & Zhang, Mengyu, 2023. "LGBTQ and finance," International Review of Financial Analysis, Elsevier, vol. 86(C).

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