Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/55914 
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dc.contributor.authorFang, Hongyanen
dc.contributor.authorNofsinger, John R.en
dc.date.accessioned2012-03-15T14:01:53Z-
dc.date.available2012-03-15T14:01:53Z-
dc.date.issued2009-
dc.identifier.citation|aThe Journal of Entrepreneurial Finance (JEF)|c1551-9570|v13|h2|nThe Academy of Entrepreneurial Finance (AEF)|lMontrose, CA|y2008|p25-55en
dc.identifier.urihttp://hdl.handle.net/10419/55914-
dc.description.abstractDo entrepreneurs consider the risk of their business equity when making investment portfolio allocations? Many people compartmentalize different risks and consider them separately, called mental accounting. Alternatively, the risk substitution hypothesis suggests that entrepreneurs would offset high business income risk by selecting a more conservative investment portfolio. We examine these two hypotheses which have implications for measuring risk tolerance. We find that households with proprietary income show higher risk tolerance than non-entrepreneurs do. Further evidence suggests that a comprehensive measure of relative risk aversion that incorporates households' business income is more reliable and more consistent with their reported risk preference than other measures that do not include business income. In supportive of the risk substitution hypothesis, households do appear to hedge the risk from their private business by decreasing their portion of other risky assets in their investment portfolio.en
dc.language.isoengen
dc.publisher|aThe Academy of Entrepreneurial Finance (AEF) |cMontrose, CAen
dc.subject.ddc650en
dc.titleRisk aversion, entrepreneurial risk, and portfolio selection-
dc.typeArticleen
dc.identifier.ppn663303893en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
econstor.citation.journaltitleThe Journal of Entrepreneurial Finance (JEF)en
econstor.citation.issn1551-9570en
econstor.citation.volume13en
econstor.citation.issue2en
econstor.citation.publisherThe Academy of Entrepreneurial Finance (AEF)en
econstor.citation.publisherplaceMontrose, CAen
econstor.citation.year2008en
econstor.citation.startpage25en
econstor.citation.endpage55en

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