Social Network and Financial Risk Tolerance Among Investors Nearing and During Retirement

  • Ela Ostrovsky-Berman
  • Howard Litwin
Original Paper


This study examined the relationship between social networks and one’s tendency to invest in risky assets. We used cross-sectional data from the Survey of Health, Aging and Retirement in Europe (SHARE), including a measure of financial risk preference and detailed information on respondents’ most meaningful social ties. We found that social network is a relevant predictor of the willingness to invest in risky assets. The size of the social network positively correlates with stock ownership, and the components of the network play an important role in investment decisions. Moreover, the propensity to invest in stocks is positively associated with the proportion of the network that is comprised of spouse and friends. However, it is negatively associated with the proportion of the network that is comprised by one’s children.


Social network Stockholding Portfolio choices Risk tolerance SHARE 


Compliance with Ethical Standards

Conflict of interest

The authors declare that they have no conflict of interest.

Research Involving Human and Animal Participants

This study does not contain any studies with human participants or animals performed by any of the authors.


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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.The Israel Gerontological Data CenterThe Hebrew University of JerusalemJerusalemIsrael

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