Search Results
Title: Individual Wealth Management: Does Self-esteem Matter?
Resulting in 1 citation.
| 1. |
Chatterjee, Swarnankur Finke, Michael S. Harness, Nathaniel J. |
|
Individual Wealth Management: Does Self-esteem Matter? Journal of Applied Business and Economics 10,2 (2009): 1-14. Also: http://works.bepress.com/swarn_chatterjee/3/ Cohort(s): NLSY79 Publisher: North American Business Press Keyword(s): Assets; Risk-Taking; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Self-Esteem; Wealth Permission to reprint the abstract has not been received from the publisher. Self-esteem measures confidence in one's abilities. Prior literature has shown that higher self-esteem can also affect individual financial decision making through an increased willingness to invest in risky assets and motivation to enhance self image through wealth accumulation. However, self-esteem can also lead to wealth-destroying investment behaviors due to overconfidence and an unwillingness to accept inevitable losses. Using the Rosenberg Self-esteem Scale included in the National Longitudinal Survey of Youth, we model wealth and portfolio allocation as a function of self-esteem, socioeconomic and demographic variables. Self-esteem is positively associated with an increase in net worth between 1994 and 2004, and with the proportion of a household portfolio held in investment assets. This study adds to the literature on psychological determinants of optimal household portfolio allocation by providing evidence that the positive effects of self-esteem outweigh the negative financial behaviors identified in prior literature. |
|
|
Bibliography Citation
Chatterjee, Swarnankur, Michael S. Finke and Nathaniel J. Harness. "Individual Wealth Management: Does Self-esteem Matter?" Journal of Applied Business and Economics 10,2 (2009): 1-14.
|