Results of OLS and probit regressions
| Independent variables | Dependent variables | |||||
|---|---|---|---|---|---|---|
| Budgeting with relative risk | Optimization with relative risk | Optimization with absolute risk | ||||
| (1) | (2) | (3) | (4) | (5) | (6) | |
| OLS | PROBIT | OLS | PROBIT | OLS | PROBIT | |
| Indexed equity funds | 0.293* (0.173) | 1.064* (0.644) | 0.324* (0.168) | 1.772** (0.889) | ||
| Active equity funds | −0.0936 (0.138) | −0.242 (0.369) | −0.0300 (0.0902) | −0.328 (0.455) | 0.0231 (0.126) | 0.0416 (0.392) |
| Large | −0.0646 (0.154) | −0.157 (0.399) | 0.0504 (0.104) | 0.242 (0.448) | −0.218* (0.126) | −0.768* (0.462) |
| Foreign | 0.131 (0.132) | 0.451 (0.477) | −0.111 (0.141) | −0.321 (0.622) | 0.125 (0.153) | 0.431 (0.485) |
| Bank | 0.130 (0.138) | 0.367 (0.440) | −0.0398 (0.0940) | −0.531 (0.622) | 0.0198 (0.128) | 0.120 (0.465) |
| Hedge funds | 0.104 (0.131) | 0.267 (0.361) | −0.0915 (0.0825) | −0.667 (0.499) | 0.213** (0.104) | 0.814* (0.455) |
| Budgeting with relative risk | 0.692*** (0.0914) | 2.798*** (0.511) | ||||
| Budgeting with absolute risk | −0.0269 (0.106) | −0.197 (0.348) | ||||
| Constant | 0.530*** (0.142) | 0.0618 (0.384) | 0.0979 (0.0779) | −1.516*** (0.492) | 0.164 (0.141) | −1.019* (0.526) |
| Observations | 68 | 68 | 68 | 68 | 68 | 68 |
| R2 or probit’s pseudo R2 | 0.128 | 0.112 | 0.547 | 0.499 | 0.086 | 0.083 |
| Independent variables | Dependent variables | |||||
|---|---|---|---|---|---|---|
| Budgeting with relative risk | Optimization with relative risk | Optimization with absolute risk | ||||
| (1) | (2) | (3) | (4) | (5) | (6) | |
| OLS | PROBIT | OLS | PROBIT | OLS | PROBIT | |
| Indexed equity funds | 0.293 | 1.064 | 0.324 | 1.772 | ||
| Active equity funds | −0.0936 (0.138) | −0.242 (0.369) | −0.0300 (0.0902) | −0.328 (0.455) | 0.0231 (0.126) | 0.0416 (0.392) |
| Large | −0.0646 (0.154) | −0.157 (0.399) | 0.0504 (0.104) | 0.242 (0.448) | −0.218 | −0.768 |
| Foreign | 0.131 (0.132) | 0.451 (0.477) | −0.111 (0.141) | −0.321 (0.622) | 0.125 (0.153) | 0.431 (0.485) |
| Bank | 0.130 (0.138) | 0.367 (0.440) | −0.0398 (0.0940) | −0.531 (0.622) | 0.0198 (0.128) | 0.120 (0.465) |
| Hedge funds | 0.104 (0.131) | 0.267 (0.361) | −0.0915 (0.0825) | −0.667 (0.499) | 0.213 | 0.814 |
| Budgeting with relative risk | 0.692 | 2.798 | ||||
| Budgeting with absolute risk | −0.0269 (0.106) | −0.197 (0.348) | ||||
| Constant | 0.530 | 0.0618 (0.384) | 0.0979 (0.0779) | −1.516 | 0.164 (0.141) | −1.019 |
| Observations | 68 | 68 | 68 | 68 | 68 | 68 |
| 0.128 | 0.112 | 0.547 | 0.499 | 0.086 | 0.083 | |
Notes:
Robust standard errors are in parentheses. We reject the regression coefficient β = 0 at p < 0.01 (
); p < 0.05 (
); p < 0.1 (
)
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