Aging Society and Attitude to Risk

Abstract

The objective of this study fills a gap in the Hungarian academic literature: its goal, on the one hand, is to systematise the research trends of decision-making and risk preferences at older ages according to the various methodological approaches, including researches based on experiment, questionnaire or wealth portfolio holding, and, on the other hand, to identify the impacts between age and financial literacy. The international academic literature shows that the researches on attitude to risk at older ages reached different conclusions depending on the research method used. In an experimental environment embedded in a play situation older people are rather risk-seeking, whereas in case of learning leading to a risky choice they are risk-averse. Based on the conclusion drawn from questionnaire surveys and portfolio selection methods, willingness to take risks decreases in older cohorts. The risk preferences dynamically changing with age highlight a new dimension of investment decisions. The research of the relationships between the investment experience accumulated with increasing age – which raises risk tolerance – and the cognitive abilities deteriorating as the end of the life-cycle approaches highlights several contradictions in the international literature.

The role of equity crowdfunding campaigns in shaping firm innovativeness: evidence from Italy

“…In crowdfunding campaigns, backers play multiple roles; they can be seen as co-investors, co-founders, co-creators and co-producers of new market propositions (Agrawal and Rahman, 2015; Ordanini et al., 2011). Thus far, extant literature has identified four main types of crowdfunding: donations-based, rewards-based, lending and equity crowdfunding (Kuti and Madarász, 2014). Donations and rewards-based are forms of non-financial crowdfunding campaigns in which funders either expect no return or receive a non-monetary reward, while lending and equity crowdfunding represent investment opportunities leading to financial returns for the backers.…”

“…The choice for equity crowdfunding relates to innovation per se . In fact, equity crowdfunding as an alternative source of financing is considered a radical financial innovation, which considerably differs from more traditional financing systems (Kuti and Madarász, 2014; Shiller, 2013). Since equity crowdfunding campaigns expand idea generation and external feedback phases, they play an important role in determining firm innovativeness (Hervé and Schwienbacher, 2018).…”

Compliance risks for crowdfunding. A neglected aspect of money laundering, terrorist financing and fraud

“… Donation-based crowdfunding . It raises money for a particular charitable project by asking many contributors to donate to it without receiving any financial or material benefit in return (Kuti and Madarász, 2014). Rewards-based crowdfunding .…”

“…The willingness of the banking sectors to lend was considerably reduced in 2008 because of the global financial crisis. At the same time, confidence in banks deteriorated (Kuti and Madarász, 2014). Thus, crowdfunding was introduced to address the needs of existing small- and medium-sized enterprises (SMEs) and start-ups seeking investment capital.…”