L. X. & Xiao J. J. (1995). Determinants of
family bond and stock holdings. Financial Counseling and Planning,
of Family Bond and Stock Holdings
Zhong 1 and Jing J. Xiao2
Determinants of owning individual
bonds and stocks were studied, using the 1989 Survey of Consumer Finances.
Tobit analyses showed bonds and stocks were more likely to be held by families
with adequate financial resources to maintain daily lives and enough funds
to meet short term financial needs. Households having a planning horizon
of at least 10 years had higher amounts of bonds and stocks. Reporting
a saving motive of “growth” was associated with higher stock holdings.
Controlling for income and other variables, stock and bond holdings increased
with education and were higher for whites than for nonwhites.
Key Words: household portfolios,
individual investors, saving, stocks, bonds, risk tolerance, Survey of
Affiliations at the time of publication:
Analyst, NationsBank Card Services, Business Development, 101 S. Tryon
St., 29th Floor, Charlotte, NC 28255. Phone: (704) 388-1508
Fax: (704) 386-0978.
2. Jing J. Xiao, Assistant
Professor, Consumer Affairs Program, College of Human Science and Service,
University of Rhode Island, Kingston, RI 02881. Phone: (401) 874-4036.
Fax: (401) 874-2581. E-mail: firstname.lastname@example.org.