Religious activity, risk-taking preferences and financial behaviour: Empirical evidence from German survey data

Abstract

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Islamic religiosity and portfolio allocation: the Malaysian context

“…Nonetheless, there is evidence that specific dimensions of religiosity impact portfolio allocation. The results of this study lend support to the literature linking Notes: * and ** denotes 0.10 and 0.05 significance level; Standard errors are denoted in parentheses; Base groups are Age_5 (for age); Income_5 (for income); Devout (for religiosity levels); Above Average (for Risk Tolerance) IMEFM 10,3 religiosity and financial decision-making (Halek and Eisenhauer, 2001;León and Pfeifer, 2013;Renneboog and Spaenjers, 2012;Lu and Chan, 2012;Hryshko, 2006;Miller, 2000). Specifically, two dimensions of Islamic religiosity were found to have some impact on Muslims' propensity to allocate risky assets in the portfolio.…”

“…Among the findings that have been observed in the literature are that individuals with higher levels of religiosity are more risk-averse than those who are nonreligious (León and Pfeifer, 2013;Diaz, 2000); hence, they tend not to hold portfolios that expose them to high risk (Lu and Chan, 2012). Moreover, Muslims have been found to be less likely to invest in risky financial investments, such as stocks, than those of other religions (León and Pfeifer, 2013). A plausible reasoning behind Muslims' risk-averse behavior is that, in Islam, Muslims are taught to avoid investments that involve excessive risk (gharar) or are speculative in nature (maysir).…”

Trust, happiness, and households’ financial decisions

“…Specifically, we allow for an independent role of respondent's religiosity (religious) as the literature indicates that individual religiosity is associated with one's investment choices (Diaz, 2000;Renneboog and Spaenjers, 2012;León and Pfeifer, 2013). We also include a variable reflecting the respondent's personal value in terms of income distribution (inequality preferences).…”

The Intergenerational Transmission of Generalised Trust and a Willingness to Take Risks

“…Náboženská víra je podle Uslanera [2002] vedle optimistického náhledu na svět a egalitarismu jedním z kořenů generalizované důvěry. Naopak ochota přijmout riziko bývá nižší u protestantů a katolíků oproti nevěřícím lidem [León, Pfeifer 2017]. Otázkou ovšem zůstává, zda sociodemografické faktory (vzdělání, náboženské vyznání) ovlivňují celkovou úroveň důvěry a ochoty riskovat, nebo zda ovlivňují i mezigenerační přenos.…”

“…Co se týče tolerance vůči riziku, podle studie Burnett et al[2010] je signifikantně vyšší u adolescentů oproti dětem,Sutter et al [2013] zjistili vyšší ochotu riskovat u chlapců oproti dívkám. Náboženská víra a vzdělání mají v naší analýze jak roli kontrolních proměnných (neboť jak již bylo zmíněno, náboženská víra a vzdělání jsou podle některých studií asociovány s důvěrou a ochotou riskovat[Hryshko, Lungo-Prado, Sørensen 2011;León, Pfeifer 2017;Putnam 2000;Uslaner 2002]), tak zároveň slouží k ověření Hypotézy 4.…”