The effects of selected family characteristics on interrelated components of household asset portfolios over a three-year time period were investigated. Specifically, this study attempted to conceptually define mental accounts, to identify own-adjustment and cross-adjustment characteristics of these mental accounts, to explore influences of selected family characteristics on these mental accounts, and to examine substantial effects of income on family portfolio behavior. Based on the behavioral life-cycle hypothesis, consumer demand theory, household production theory, and the stock adjustment hypothesis, a family portfolio behavior model was formulated for studying family saving behavior as reflected in household asset portfolios. A tobit model was utilized to estimate own- and cross-adjustment coefficients of the portfolio components, and short-term and equilibrium effects of family characteristics. The data were from the Survey of Consumer Finances conducted in 1983 and 1986. Findings strongly support the mental account hierarchy hypothesis which was reflected in the own- and cross-adjustment coefficients estimated. In addition, family income and education of the household head showed positive influences on various mental accounts. Age of the household head, employment status, family life cycle stage, house mortgage, home value, other assets, and other debts showed effects on some mental accounts. Income had a substantial influence on family portfolio behavior. The behavior of middle-income families was more consistent with the hypothesis of a mental account hierarchy than the other income groups, which implies diverse preferences for asset characteristics and varying financial needs of families at different income levels. This study has contributed to the body of knowledge of family saving behavior and increased the understanding of adaptivity and dynamics of family saving behavior. The research findings could be utilized by family finance educators and consultants, financial service marketers, and public policy makers in working successfully with different family types, marketing various financial instruments, and designing effective savings policies. In addition, this study has provided empirical evidence to assess existing theoretical models and to inspire the building of new theories. / Graduation date: 1992

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The existing literature on household wealth accumulation has hitherto recognized the lifecycle effects, household socio-economic characteristics, bequest motives, and intergenerational transfers as important factors affecting household net wealth. The two empirical essays in this thesis expand the literature by emphasizing the likely roles that a household's tenure choice and home equity borrowing decisions have in its wealth accumulation process. The first essay, entitled "Homeownership and Household Wealth Accumulation", tests whether homeownership has placed the owner household on a more favorable wealth accumulation path, based on past observations that the values of owner-occupied housing have grown at a real rate greater than those of financial or other tangible assets. The premise is that, while the tenure choice decision is affected by a household's net wealth, the housing tenure chosen could place a household on different wealth accumulation paths over its life-cycle. Controlling for selection bias arising from tenure status, the results indicate that typical homeowners and renters have distinct wealth accumulation processes. While homeownership improves the wealth position of homeowners, the renter households are, however, better off in their existing tenure than otherwise. It appears that households self-select themselves into the appropriate tenure that optimizes their wealth accumulation paths. The second essay on "Household Consumption/Investment Behavior and Home Equity Loans" investigates which behavioral model underpins the homeowners' consumption and investment decisions of home equity loan funds, and how these decisions impact portfolio decisions and wealth accumulation. It concludes that the 'life-cycle model' and the 'precautionary savings model' prevail over the 'bequest motive model' in motivating the household consumption/investment decisions of home equity loans. Home equity loans alter the illiquid nature of housing investment through convenient tapping of housing equity, and reduce household preference to hold liquid assets to meet precautionary needs. Their presence encourages loan users to hold smaller shares of liquid cash and financial assets in total assets, and to diversify from housing asset to business, real estate and illiquid nonhousing assets. They generally reduce homeowners' net wealth, reflecting a tendency for borrowed funds to be consumed or invested in loss-incurring assets.

The existing literature on household wealth accumulation has hitherto recognized the lifecycle effects, household socio-economic characteristics, bequest motives, and intergenerational transfers as important factors affecting household net wealth. The two empirical essays in this thesis expand the literature by emphasizing the likely roles that a household's tenure choice and home equity borrowing decisions have in its wealth accumulation process. The first essay, entitled "Homeownership and Household Wealth Accumulation", tests whether homeownership has placed the owner household on a more favorable wealth accumulation path, based on past observations that the values of owner-occupied housing have grown at a real rate greater than those of financial or other tangible assets. The premise is that, while the tenure choice decision is affected by a household's net wealth, the housing tenure chosen could place a household on different wealth accumulation paths over its life-cycle. Controlling for selection bias arising from tenure status, the results indicate that typical homeowners and renters have distinct wealth accumulation processes. While homeownership improves the wealth position of homeowners, the renter households are, however, better off in their existing tenure than otherwise. It appears that households self-select themselves into the appropriate tenure that optimizes their wealth accumulation paths. The second essay on "Household Consumption/Investment Behavior and Home Equity Loans" investigates which behavioral model underpins the homeowners' consumption and investment decisions of home equity loan funds, and how these decisions impact portfolio decisions and wealth accumulation. It concludes that the 'life-cycle model' and the 'precautionary savings model' prevail over the 'bequest motive model' in motivating the household consumption/investment decisions of home equity loans. Home equity loans alter the illiquid nature of housing investment through convenient tapping of housing equity, and reduce household preference to hold liquid assets to meet precautionary needs. Their presence encourages loan users to hold smaller shares of liquid cash and financial assets in total assets, and to diversify from housing asset to business, real estate and illiquid nonhousing assets. They generally reduce homeowners' net wealth, reflecting a tendency for borrowed funds to be consumed or invested in loss-incurring assets. / Business, Sauder School of / Graduate

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Throughout the world, weather-related and other natural phenomena claim thousands of lives and devour billions of dollars annually in recovery efforts. Destruction of life and property in the wake of disasters is devastating, and can have a dramatic impact on families and businesses around the globe. Yet, published works specifically in the field of Family Resource Management (FRM) reveal a limited understanding of how families respond when these critical events strike with little or no warning, particularly for business-owning families. This paper explores family business responses to a particular natural disaster through case study research from the FRM perspective. Essentially, its purpose is to ascertain whether the FRM description of management is useful for family business systems in the wake of a natural disaster. A review of the FRM and family business literature is offered, followed by a broad description of qualitative methods and a justification for the case study methodology for this project. In-depth information about the successful management of a natural disaster was gathered through face-to-face and phone interviews with five leaders of family-owned businesses. The interviews were transcribed and analyzed, followed by member checks and peer reviews to strengthen the trustworthiness of the findings. Based on the experiences of the five CEOs that participated in this study, it appears that the FRM conceptualization of management generally captured their experience and can perhaps be a useful tool in conceptualizing the preparation for, and recovery from, critical events. It was also found, as anticipated, that access to tangible resources (money, materials, equipment) and intangible resources (communication processes, family unity, adaptability, relationships) was a key to successful management. What was somewhat surprising, however, was the emphasis placed on the power of relationships in the management process. A discussion on how this study relates to previous work on family stress and coping models is offered, and implications for researchers, practitioners, and government agencies that interface with families in business are provided. / Graduation date: 2003

Using data from a national survey, this study examines income and other key variables (division of labor and work-family conflict) and their relationship to marital satisfaction. This study builds upon the body of research regarding working couples and women's increased participation in the paid labor force as well as evaluates the findings in the context of data gathered from the recent United States census. Results from this study also are compared to the findings of other key studies. Emergent data may be used to prepare counselors to work more effectively with couple clients and to assist employers in the development of work life policies for dual career and dual earner employees. Results from the multiple regression revealed no direct effects of income on marital satisfaction. For this sample, increases in work family conflict contributed to less marital satisfaction as did the presence of children. Increased participation in household chores by respondents' partners contributed to increased marital satisfaction. No differences were observed by gender. Limitations of the study, recommendations for further research, and implications for practitioners also are addressed.