Implication of stigmatization on investors financial risk tolerance: The case of gay men

This study evaluates whether the salience of discrimination and perceived stigmatization influence gay men’s financial risk tolerance (FRT). This evaluation is conducted using the FRT measure of Grable and Lytton (1999), a “two-study ruse” approach and a hierarchical linear regression model. The findings show that individuals with anticipated stigmatization, after being exposed to information about bias against their community, exhibited greater FRT. These results support the hypothesis that risk-taking behavior by members of stigmatized populations increases when they experience discrimination.