Retail investors' financial risk tolerance and their risk-taking behaviour: The role of demographics as differentiating and classifying factors
By M. Kannadhasan. 2015
143 citations recorded by the source corpus.
Abstract This paper empirically examines whether demographic factors namely gender, age, marital status, income, occupation, and education could be used individually or in combination to differentiate among retail investors in terms of financial risk tolerance (FRT) and risk taking behaviour (FRB), and classify retail investors into FRT and FRB categories. A single cross sectional survey was conducted among 778 retail investors with various levels of investment experience, through a structured questionnaire covering a variety of demographic factors. Four of the six demographic factors were found to be useful in differentiating between levels of investors' FRT and FRB as well as classifying individuals into different FRT and FRB categories.
Subfields: Accounting, Clinical Psychology, General Decision Sciences
View Paper: https://www.semanticscholar.org/paper/af52af9f913e62ab3b151eae31230f07b2c704f5
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In Accounting
In Clinical Psychology
In General Decision Sciences
Citations in the corpus
- Do investors exhibit behavioral biases in investment decision making? A systematic review (2018, background): “By their study, Kengatharan and Kengatharan (2014) have highlighted the individual investor’s behavior on the Colombia Stock Exchange.”
- Consumer resistance and inertia of retail investors: Development of the resistance adoption inertia continuance (RAIC) framework (2020, unknown): “Interestingly, the choice behavior of retail investors is not always a result of a rational evaluation (Kannadhasan, 2015).”
- Financial Literacy and Financial Risk Tolerance of Individual Investors: Multinomial Logistic Regression Approach (2020, background): “• • Youngsters have a higher risk tolerance than older adults; • • Men have a higher risk tolerance than women; • • Single people have a higher risk tolerance than married people; • • Risk tolerance increases as income and wealth level increase; • • Risk tolerance increases as educational level incr”