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Religious‐based portfolio selection
Author(s) -
Lu JinRay,
Chan ChihMing
Publication year - 2012
Publication title -
review of financial economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 41
eISSN - 1873-5924
pISSN - 1058-3300
DOI - 10.1016/j.rfe.2011.12.004
Subject(s) - portfolio , economics , wage , selection (genetic algorithm) , asset (computer security) , capital (architecture) , stock (firearms) , attendance , labour economics , demographic economics , financial economics , mechanical engineering , computer security , archaeology , artificial intelligence , computer science , engineering , history , economic growth
We examine religious attendance and portfolio selection decisions for an individual with religious beliefs within a continuous‐time framework. Our findings are three‐fold. First, religious contributions increase with wealth capital, the degree of religious devotion, and an increase in the wage level. Second, religious attendance positively relates to wealth capital and the performance of stock investments, but negatively correlates with wage return rates. Third, participation in religious activities can result in declining demand for risky asset investments. Theoretically, this study explains how individuals’ portfolio choices correlate with their religious activities.