Johnson Antwi|Cephas B. Naanwaab
Generational Differences, Risk Tolerance, and Ownership of Financial Securities: Evidence from the United States
Texas Tech University|North Carolina Agricultural and Technical State University
paper examines relationship generational differences risk tolerance attitudes towards financial investments nationally representative sample united states america sample consists pooled crosssectional data three waves 20122018 80000 observations national financial capability study nfcs using probit model without sample selection predictor variables estimated statistically significant effects ownership financial securities expected sign effects clearly generational cohort effect whereby baby boomers average likely financial investments millennials controlling factors incomes education financial literacy generation xers statistically less likely investments financial securities compared millennials general baby boomers riskaverse generation xers riskloving millennials accounting education income levels paper reveals conundrum baby boomers gen xers although less riskaverse less likely financial securities control reverse causality endogeneity relationship risk tolerance ownership securities using bivariate probit model level financial knowledge respondents correlates highly asset ownership individuals high medium levels financial knowledge likely financial assets low levels financial knowledge address limitations current findings regard generational attitudes towards financial investments research recommended