 Does personality predict financial risk tolerance of pre-retiree baby boomers?Abed G. Rabbani, Zheying Yao and Christina Wang Journal of Behavioral and Experimental Finance, 2019, vol. 23, issue C, 124-132 Abstract: Financial risk tolerance is an important concept that helps financial planners recommend financial products to their clients. As the baby boomer generation approaches retirement, research to determine how these individuals perceive financial risk tolerance has grown exponentially. The present study examines the relationship between financial risk tolerance and the Big Five personality traits (also known as the Five-Factor Model), which include extraversion, agreeableness, conscientiousness, emotional stability, and openness to experience, in the baby boomer generation. We argue that the influences of Big-five personality traits are consistent in baby-boomer generation. We find that baby boomers with a higher degree of extraversion, emotional stability, and openness to experience are more risk tolerant, while those with a higher degree of agreeableness and conscientiousness have lower risk tolerance. Keywords: Big Five; Financial risk tolerance; Five-Factor Model; National Longitudinal Survey of Youth 1979; Pre-retiree baby boomers (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:23:y:2019:i:c:p:124-132 DOI: 10.1016/j.jbef.2019.06.001 Access Statistics for this article Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber More articles in Journal of Behavioral and Experimental Finance from Elsevier |
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