Determinants
of Family Bond and Stock Holdings
Lucy X.
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 Consumer Finance
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: xiao@uriacc.uri.edu.