Demography factors, financial risk tolerance, and retail investors

Sutejo, Bertha Silvia; Pranata, Yohanes Kokoh Natan; Mahadwartha, Putu Anom

doi:10.2991/insyma-18.2018.20

Cited by 5 publications

(5 citation statements)

References 7 publications

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“…The income variable is also found to have a significant positive impact on FRT for both genders. The findings are supported from the similar findings by [35,39,42,49,62,[64][65][66][67]100]. Entrepreneurs are inherent risk takers; hence, their FRT is also high [66].…”

Section: Discussionsupporting

confidence: 78%

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Role of Gender in Predicting Determinant of Financial Risk Tolerance

Thanki¹,

Shah

Sapovadia³

et al. 2022

Sustainability

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This research was conducted to determine whether the determinants of financial risk tolerance varied by gender or whether the same factors influenced the risk-taking capacities of both genders. This study utilised personality types (Type-A and Type-B), financial literacy, and six demographic parameters, including marital status, age, education, income, occupation, and the number of dependents, as independent variables, and gender as a dividing variable. In order to conduct this study, information was gathered from 671 investors. The financial risk tolerance of male investors was determined by six out of eight independent factors (personality type, financial literacy, marital status, income, occupation, and the number of dependents). However, just four factors (personality type, financial literacy, marital status, and income) have a substantial impact on the financial risk tolerance of female investors.

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Section: Discussionsupporting

confidence: 78%

“…Individuals allocate some percentage of their income for investment to increase their wealth, which is positively associated with FRT. With the income/wealth increases, the FRT moves upward [35,39,42,49,62,[64][65][66][67][68]. A higher income and wealth level helps to hold adverse investment return shocks.…”

Section: Income and Frtmentioning

confidence: 99%

Role of Gender in Predicting Determinant of Financial Risk Tolerance

Thanki¹,

Shah

Sapovadia³

et al. 2022

Sustainability

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“…At this point, risk tolerance is included in the process. Financial risk tolerance can be defined as the amount of financial uncertainty that individuals want to accept (Sulaiman, 2012;Kannadhasan, 2015;Mishra and Mishra, 2016;Pinjisakikool, 2018;Sutejo et al, 2018). It is subjective, associated with financial knowledge (Grable, 2000;Rabbani et al, 2021), financial literacy (Fisher and Yao, 2017;Bayar et al, 2020) and emotional intelligence, and it has emotional, cognitive and psychological dimensions (Nigam et al, 2018;Lucarelli et al, 2015;Ferreira, 2019).…”

Section: Risk Perception Risk Tolerance Risk Taking/risk Avoidance An...mentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Evaluation of investment preference with phantasy, emotional intelligence, confidence, trust, financial literacy and risk preference

Aren

Hamamcı

2022

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PurposeThere is strong excitement during Ponzi schemes and financial bubble periods. This emotion causes investors to turn to “unknown and new investment instruments”. This study, the factors that made “unknown and new investment instruments” preferable to “known and experienced investment instruments” were investigated.Design/methodology/approachIt was taken into account unconscious like phantasy, emotional like emotional intelligence, both affective and cognitive like financial literacy and subjective beliefs like trust and overconfidence. In addition, risk preferences were measured with four different risk variables. In this context, data were collected by online survey method between November 2020 and May 2021 with convenience sampling. First, the data were collected from 832 participants in the pilot study. Additional data were also collected using convenience sampling and online surveys, and a total of 1,692 participants were obtained. Data were analyzed using Statistical Package for the Social Sciences (SPSS) 25 and AMOS 24.FindingsAs a result of the analyses made, the variables that lead investors to choose “unknown and new investment instruments” were determined as risky investment intention, phantasy, risk taking/risk avoidance, confidence, risk tolerance and subjective financial literacy. Trust and risk perception have a very weak effect on preferences. However, no effect of emotional intelligence and objective financial literacy was detected. In addition, a moderately positive and significant relationship was found between objective and subjective financial literacy. Subjective financial literacy was found to have a strong and significant relationship with emotional intelligence, confidence, trust, risky investment intention and phantasy.Originality/valueThis study investigates the factors underlying individuals' investment preferences from a broad perspective. We think that this study is unique in this structure and wide variables. We believe that the findings obtained in this manner are unique to both academics and practitioners. We also believe that the findings of the study will make an important contribution to understanding participation behavior in various Ponzi schemes and financial bubbles.

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“…Regression analysis is a tool developed in a statistical context and widely used by researchers in various fields of knowledge when the objective is to describe the relationship between a response variable and a set of explanatory variables (Dawes, Green & Sharp, 2018;Sutejo, Pranata & Mahadwartha, 2018;Emirza & Katrinli, 2019;Radaelli & Wagemann, 2019;Arkes, 2020;Nethery et al 2020). It is observed that the initial proposals of regression models take the form of a linear model whose error term follows a normal distribution with homogeneous variance and the response variable defined as a linear function of independent variables.…”

Section: Introductionmentioning

confidence: 99%

The simplex regression model as a methodology of actuarial analysis

Cavalcante

2023

Contextus

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The risk management business evolves rapidly, so actuaries are faced with the need for new analysis methodologies. However, the use of incorrect methodologies for actuarial modeling can have serious implications for strategic decision making. This study aims to introduce the simplex regression model as a suitable methodology for actuarial modeling of data whose values belong to the unit interval. Using a risk management data set, the linear model with normal distribution and the proposed regression model were compared. The evaluation of the models presented concluded by the quality of the modeling through simplex regression, indicating the quality of this method as a new analysis tool for the actuarial context.

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Demography factors, financial risk tolerance, and retail investors

Cited by 5 publications

References 7 publications

Role of Gender in Predicting Determinant of Financial Risk Tolerance

Role of Gender in Predicting Determinant of Financial Risk Tolerance

Evaluation of investment preference with phantasy, emotional intelligence, confidence, trust, financial literacy and risk preference

The simplex regression model as a methodology of actuarial analysis

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