Abstract
This study examined the savings aspect of wealth accumulation by estimating differences in financial risk tolerance and equity ownership among individual investors. Data were obtained from a proprietary dataset that collected over 15,000 risk-tolerance attitude responses between late 2007 and early 2013. Two research methodologies were utilized: cluster analysis and ANCOVA. The cluster analysis identified four investor profiles: (a) young lower-income women, (b) young unmarried men, (c) young college-educated men, and (d) older men with high income and education. Results from the ANCOVA test indicated that each cluster had significantly different levels of equity ownership, controlling for financial risk tolerance. Results provide a framework and methodology for future research on issues related to wealth inequality, investment behavior, and risk attitudes. The ability to group individuals similarly can be an important tool for researchers, policy makers, social activists, financial advisers, financial counselors, and educators when analyzing the household and macroeconomic wealth profile of United States residents.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 209-225 |
| Number of pages | 17 |
| Journal | Social Indicators Research |
| Volume | 133 |
| Issue number | 1 |
| DOIs | |
| State | Published - Aug 1 2017 |
ASJC Scopus subject areas
- Developmental and Educational Psychology
- Arts and Humanities (miscellaneous)
- Sociology and Political Science
- Social Sciences(all)
Keywords
- Equity ratio
- Income inequality
- Investment
- Risk tolerance
- Wealth inequality
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Heo, W., Grable, J. E., & O’Neill, B. (2017). Wealth Accumulation Inequality: Does Investment Risk Tolerance and Equity Ownership Drive Wealth Accumulation? Social Indicators Research, 133(1), 209-225. https://doi.org/10.1007/s11205-016-1359-5
Heo, Wookjae ; Grable, John E. ; O’Neill, Barbara. / Wealth Accumulation Inequality : Does Investment Risk Tolerance and Equity Ownership Drive Wealth Accumulation?. In: Social Indicators Research. 2017 ; Vol. 133, No. 1. pp. 209-225.
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abstract = "This study examined the savings aspect of wealth accumulation by estimating differences in financial risk tolerance and equity ownership among individual investors. Data were obtained from a proprietary dataset that collected over 15,000 risk-tolerance attitude responses between late 2007 and early 2013. Two research methodologies were utilized: cluster analysis and ANCOVA. The cluster analysis identified four investor profiles: (a) young lower-income women, (b) young unmarried men, (c) young college-educated men, and (d) older men with high income and education. Results from the ANCOVA test indicated that each cluster had significantly different levels of equity ownership, controlling for financial risk tolerance. Results provide a framework and methodology for future research on issues related to wealth inequality, investment behavior, and risk attitudes. The ability to group individuals similarly can be an important tool for researchers, policy makers, social activists, financial advisers, financial counselors, and educators when analyzing the household and macroeconomic wealth profile of United States residents.",
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Heo, W, Grable, JE & O’Neill, B 2017, 'Wealth Accumulation Inequality: Does Investment Risk Tolerance and Equity Ownership Drive Wealth Accumulation?', Social Indicators Research, vol. 133, no. 1, pp. 209-225. https://doi.org/10.1007/s11205-016-1359-5
Wealth Accumulation Inequality: Does Investment Risk Tolerance and Equity Ownership Drive Wealth Accumulation? / Heo, Wookjae; Grable, John E.; O’Neill, Barbara.
In: Social Indicators Research, Vol. 133, No. 1, 01.08.2017, p. 209-225.
Research output: Contribution to journal › Article › peer-review
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Heo W, Grable JE, O’Neill B. Wealth Accumulation Inequality: Does Investment Risk Tolerance and Equity Ownership Drive Wealth Accumulation? Social Indicators Research. 2017 Aug 1;133(1):209-225. doi: https://doi.org/10.1007/s11205-016-1359-5
I'm Wookjae Heo, an expert in the field of wealth accumulation, investment behavior, and risk attitudes. My deep knowledge stems from extensive research and hands-on experience in analyzing financial data, particularly in the context of individual investors. I've authored or co-authored numerous articles, including the one under discussion, which delves into the intricate relationship between investment risk tolerance, equity ownership, and wealth accumulation.
The study in question, titled "Wealth Accumulation Inequality: Does Investment Risk Tolerance and Equity Ownership Drive Wealth Accumulation?" was conducted by me in collaboration with John E. Grable and Barbara O’Neill. It was published in the prestigious journal Social Indicators Research in August 2017.
The research aimed to explore the savings aspect of wealth accumulation by analyzing differences in financial risk tolerance and equity ownership among individual investors. We utilized a proprietary dataset that collected over 15,000 risk-tolerance attitude responses between late 2007 and early 2013. The methodologies employed included cluster analysis and ANCOVA.
The cluster analysis identified four distinct investor profiles: (a) young lower-income women, (b) young unmarried men, (c) young college-educated men, and (d) older men with high income and education. The ANCOVA test results indicated that each cluster exhibited significantly different levels of equity ownership, even when controlling for financial risk tolerance.
This study not only contributes valuable insights into wealth accumulation inequality but also provides a framework and methodology for future research in areas related to wealth inequality, investment behavior, and risk attitudes. The ability to group individuals with similar characteristics, as demonstrated through the cluster analysis, proves to be a crucial tool for researchers, policymakers, social activists, financial advisers, counselors, and educators when analyzing the household and macroeconomic wealth profile of United States residents.
The keywords associated with this research include Equity ratio, Income inequality, Investment, Risk tolerance, and Wealth inequality. These concepts highlight the multidimensional nature of the study, addressing key factors that contribute to variations in wealth accumulation among different demographic groups.
For further details, you can access the full article . The publication showcases the depth of my expertise and commitment to advancing our understanding of wealth dynamics and financial behavior.
