K-State Faculty Win Paper Award
Thursday, May 20, 2010
John Grable, Sonya Britt, and Farrell Webb recently won the 2009 Outstanding Journal Article award presented by the Association for Financial Counseling and Planning Education. Drs. Grable and Britt, who are faculty members in the Personal Financial Planning unit at K-State, worked with Dr. Webb--a nationally known Family Studies researcher--in the development of a structural equation model of risk-taking behavior.
Their paper is titled Environmental and Biopsychosocial Profiling as a Means for Describing Financial Risk-Taking Behavior. The paper's abstract is as follows:
This paper describes a test of a conceptual model of personal financial risk-taking behavior. The approach incorporates environmental and biopsychosocial factors associated with risk-tolerance attitudes and risk-taking financial management behavior. Findings indicated, similar to the method used to describe socioeconomic status, generalized profiling can be a useful tool to help researchers and policy makers improve understanding of the determinants of risk taking. Level of affluence, as described by a person’s environmental profile, appears to serve as a protection against circumstances that could lead to negative financial behavior. Risk tolerance, as a precipitating risk factor, was an important determinant of financial risk-taking behavior.