Cross cultural risk-tolerance self-evatuation bias : comparing South Koreans and Americans

Cross cultural risk-tolerance self-evatuation bias : comparing South Koreans and Americans

Creators Grable John

Creators Joo So-Hyun

Creators Park Joo-Yung

A sample of non-U.S. citizen South Koreans living in the United States (n=91) and a somewhat smaller sample of Americans (n=62) was used to test for cross-cultural self-evaluation bias in relation to financial risk tolerance. Using a residual self-evaluation assessment technique, it was determined that Koreans under-estimated, while Americans over-estimated, their tolerance for risk. Results from a regression analysis showed that Koreans had self-evaluation bias on the low side. Americans were shown to evaluate their risk tolerance too highly. Age was also statistically significant. Those who were older were more likely to have a predicted risk-tolerance score that was higher than their personal evaluation.

[ISSN]0911-6303

[NCID]AN00155911