Client risk tolerance is universally assessed in the advisory process to help financial advisers provide suitable advice that assists clients in their investment decision-making. Although there is a well-established literature on risk tolerance and decision-making, little is known about financial risk tolerance and its influence on investor decisions in the financial advice context. Thus, the purpose of this study is to examine this influence with a focus on the key expected risk tolerance determinants: client financial literacy, trust in the financial advice service, and relationship length with the service. A new theoretical model and related hypotheses were proposed and tested using survey data from financial adviser clients in Australia (N=538). Results revealed a positive relationship between client risk tolerance and investment decision-making. Further, client trust and relationship length with the service were found to be positively associated with client financial literacy and risk tolerance. These findings, which provide a more comprehensive understanding of how risk tolerance and its antecedents influence client decisions, have the potential to improve advice in the financial services industry. KeywordsRisk tolerance, individual investment decisions, client-adviser relationship, financial advice context, financial planning AbstractClient risk tolerance is universally assessed in the advisory process to help financial advisers provide suitable advice that assists clients in their investment decision-making. Although there is a well-established literature on risk tolerance and decision-making, little is known about financial risk tolerance and its influence on investor decisions in the financial advice context. Thus, the purpose of this study is to examine this influence with a focus on the key expected risk tolerance determinants: client financial literacy, trust in the financial advice service, and relationship length with the service. A new theoretical model and related hypotheses were proposed and tested using survey data from financial adviser clients in Australia (N=538). Results revealed a positive relationship between client risk tolerance and investment decisionmaking. Further, client trust and relationship length with the service were found to be positively associated with client financial literacy and risk tolerance. These findings, which provide a more comprehensive understanding of how risk tolerance and its antecedents influence client decisions, have the potential to improve advice in the financial services industry. JEL Classification: D14

Using dyadic data from 200 young adult couples (aged 18–31 years) in Mainland China and guided by the Development of Early Adult Romantic Relationships model (Bryant & Conger, 2002), the current study evaluated direct and indirect associations between family of origin dysfunction and intimate relationship success via the potential mediators of mental health problems and negative couple interaction. Results demonstrated male partner family dysfunction was associated directly and indirectly with lower relationship success via negative couple interaction. Female partner family dysfunction was related to their own reduced relationship success via mental health problems and less relationship success for male partners via mental health problems and negative couple interaction. Implications for intervention, theory development, and future research are discussed.

PurposeThe purpose of this study is to examine a mechanism through which subjective financial literacy can exert negative effects on the retirement saving intention and behaviors, which has not been well understood in prior research. Particularly, the authors draw on the relevant risk literature to introduce financial risk tolerance and risk perception as important mediators that transfer subjective financial literacy into reduced retirement saving intention which in turn affects the saving behaviors.Design/methodology/approachThe authors test the model with a sample of 347 adults using factor analysis and structural equation modeling.FindingsConsistent with the notions about the negative side of subjective financial literacy, the authors find supporting evidence for the proposed indirect effects of financial literacy on retirement saving intention via risk tolerance and risk perception. In addition, the authors observe that an individual's retirement saving intention strongly predicts their retirement saving behaviors.Originality/valueThe study offers insights into the mechanisms that subjective financial knowledge might also inhibit individual's responsible financial behaviors (e.g. retirement saving).

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Using dyadic data from 200 young adult couples (aged 18-31 years) in Mainland China, this study evaluated associations between shame proneness, intimate partner attachment, adaptive interactions, and relationship satisfaction. Results demonstrated that shame proneness was directly associated with more insecure attachment to the partner (anxious and avoidant dimensions) and less adaptive interactions (operationalized by variables assessing constructive problem solving and negative interactions) and indirectly with lower relationship satisfaction for male and female partners. While shame is a highly valued emotion in Confucian cultures, shame proneness may be a liability for modern-day intimate relations.