Religious activity, risk-taking preferences and financial behaviour: Empirical evidence from German survey data
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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Religious activity, risk-taking preferences and financial behaviour : Empirical evidence from German survey data. / León, Anja Köbrich; Pfeifer, Christian.
in: Journal of Behavioral and Experimental Economics, Jahrgang 69, 01.08.2017, S. 99-107.Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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TY - JOUR
T1 - Religious activity, risk-taking preferences and financial behaviour
T2 - Empirical evidence from German survey data
AU - León, Anja Köbrich
AU - Pfeifer, Christian
PY - 2017/8/1
Y1 - 2017/8/1
N2 - Individual preferences with respect to risk taking play an important role in financial economic behaviour and hence in financial markets. Using German microdata, we argue that individual religiosity accounts for differences in individual's risk preferences and private financial behaviour. First, we find that adherents of the two main Christian religions in Germany (Protestants and Catholics) are less willing to take risks in general than non-religious people. We further find that Muslims in Germany are less risk-taking in general than Catholics, Protestants and non-religious people. Moreover, in explicitly considering a context-specific risk attitude, namely the willingness to take risks in financial matters, our results indicate that it is necessary to control for underlying general risk-taking preferences due to the heterogeneous attitudes of Christians and Muslims regarding financial risk taking. Second, while controlling for individual financial risk-taking preferences, we provide empirical evidence of differences in household financial behaviour between religious and non-religious individuals in Germany. Our results furthermore support the view that religious participation helps to explain different individual investment behaviour.
AB - Individual preferences with respect to risk taking play an important role in financial economic behaviour and hence in financial markets. Using German microdata, we argue that individual religiosity accounts for differences in individual's risk preferences and private financial behaviour. First, we find that adherents of the two main Christian religions in Germany (Protestants and Catholics) are less willing to take risks in general than non-religious people. We further find that Muslims in Germany are less risk-taking in general than Catholics, Protestants and non-religious people. Moreover, in explicitly considering a context-specific risk attitude, namely the willingness to take risks in financial matters, our results indicate that it is necessary to control for underlying general risk-taking preferences due to the heterogeneous attitudes of Christians and Muslims regarding financial risk taking. Second, while controlling for individual financial risk-taking preferences, we provide empirical evidence of differences in household financial behaviour between religious and non-religious individuals in Germany. Our results furthermore support the view that religious participation helps to explain different individual investment behaviour.
KW - Private financial behaviour
KW - Religious beliefs
KW - Risk aversion
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=85023176204&partnerID=8YFLogxK
U2 - 10.1016/j.socec.2017.05.005
DO - 10.1016/j.socec.2017.05.005
M3 - Journal articles
AN - SCOPUS:85023176204
VL - 69
SP - 99
EP - 107
JO - Journal of Behavioral and Experimental Economics
JF - Journal of Behavioral and Experimental Economics
SN - 2214-8043
ER -