 Socioeconomic status and individual investors’ behavior during a financial crisisKoresh Galil, Avia Spivak and Aviad Tur-Sinai Journal of Behavioral and Experimental Finance, 2023, vol. 40, issue C Abstract: The COVID-19 pandemic triggered a financial crisis that provides a unique opportunity to examine investor behavior using an administrative dataset of individuals in Israel. The dataset includes information on withdrawals from tax-sheltered training funds, switching to less risky or riskier investment tracks, and individual socioeconomic status (SES). Our analysis reveals that during the peak of the crisis in March 2020, low-SES investors were more likely to withdraw money from their training funds despite incurring a significant tax penalty for so doing. This resulted in a double loss for poorer investors, who were hit by both the stock-market decline and the tax penalty. In contrast, higher-SES investors were less likely to liquidate their funds. Additionally, investors were found to be more likely to increase risk as SES rises and less likely to decrease risk as SES rises. Keywords: Financial crisis; Household finance; Household saving; Personal finance; COVID-19; Socioeconomic status; SES (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:40:y:2023:i:c:s2214635023000692 DOI: 10.1016/j.jbef.2023.100855 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 |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.