Cross-Cultural Differences in the Perception of Portfolio Risk

(Pages 19-30)

Lucy F. Ackert1,*, Bryan K. Church2 and Li Qi3
1Department of Economics and Finance, Michael J. Coles College of Business, Kennesaw State University, 1000 Chastain Road, Kennesaw, Georgia 30144.
2Scheller College of Business, Georgia Tech. Atlanta, Georgia 30308.
3Department of Economics and Business Management, Agnes Scott College, 141 E. College Avenue, Decatur, Georgia 30030.


This paper provides cross-cultural perspective on how people evaluate assets and, importantly, create investment portfolios. We design an experiment to systematically examine how risk attitude and perception impact the evaluation of risky assets and portfolios across distinct cultures. Our Chinese participants are less risk averse in their perceptions of individual assets, but their portfolio asset allocation decisions are consistent with lower tolerance for risk. American participants place much more money at risk, and gender differences are striking with men being significantly more risk seeking.


Cultural differences, laboratory experiments, portfolio choice, risk preferences.


C92, G15.

How to Cite:

Lucy F. Ackert, Bryan K. Church and Li Qi. Cross-Cultural Differences in the Perception of Portfolio Risk. Review of Economics and Finance. [ref]: vol.18.2020. available at:

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