Macroeconomic Conditions and Australian Financial Risk Attitudes, 2001–2010

West, Tracey; Worthington, Andrew C.

doi:10.1007/s10834-013-9362-3

Cited by 46 publications

(35 citation statements)

References 40 publications

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“…This reflects the overall flight to liquid cash style investments in 2010, as also shown in Table , where deposit holdings increased on average from $33,277 in 2006 to $47,429 in 2010, whilst the average equity holdings fell from an average of $63,118 to $47,285. The downward trend of risk aversion has been captured by West and Worthington () who found that Australian households generally reduced their tolerance for risk over time. However, as Figure demonstrates, there are significant outliers causing the distribution to be positively skewed, particularly in 2010.…”

Section: Resultsmentioning

confidence: 99%

“Fair go” for all? Wealth and Risk Aversion of Australian Households*

Tsigos

Daly

2016

Australian Economic Papers

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A mean‐variance framework is applied to Australian household financial portfolios in order to provide estimates of relative risk aversion in the economy. Controlling for various socio‐economic characteristics, we explore whether risk aversion heterogeneity is a function of wealth heterogeneity. In contrast to most studies, we find evidence of very high risk aversion amongst the majority of households of poor households but vastly lower risk aversion amongst the high percentiles in the wealth distribution. Applying a first differences model across three survey waves spanning 2002 to 2010, we find that risk tolerance increases significantly with wealth. Risk tolerance is positively associated with mortgage payments, but rental payments have no relationship. In addition, we found no evidence that holding a university education has any discernible impact on risk aversion. Lastly, we present some preliminary findings as to the impact of financial advice on observed risk aversion. Financial advice is found to accentuating risk aversion, particularly amongst the wealthiest households. The findings have potential implications for the distribution of wealth in Australia that has received renewed interest recently.

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Section: Resultsmentioning

confidence: 99%

“Fair go” for all? Wealth and Risk Aversion of Australian Households*

Tsigos

Daly

2016

Australian Economic Papers

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“…Researcher also shows that macroeconomic conditions also affect the risk tolerance level of respondent in the same as demographic and socioeconomic characteristics. [16] The researcher also says that financial literacy can also be defined as the ability to understand the financial terms and also the mathematical ability of the individual. For doing the research the researcher consider some factors as age, occupation, gender, ethnicity, income saving and debt.…”

Section: Retirement Planningmentioning

confidence: 99%

“Impact of financial literacy and Risk Tolerance on Investment Decision”

Sharma¹

2020

IJMH

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Researcher has followed a widespread approach for explain the relationship between financial literacy, risk tolerance and investment decision. Recently there has been increasing interest in studying the behaviors of investors and the factors which affecting the investment decisions of investors due to a synchronized approached followed by a large number of investors. A Study has been shown that a large number of investors look after the safety of their money not higher return.[1] Investment decision is a crucial decision which is influenced by various factors as financial literacy, income level, financial soundness and various other demographic and sociological factors. The choice of investment alternative of is broadly depends upon the risk tolerance level of investors.[2] On the basis of certain conclusion, cover from precious research, the researcher in this study defines the relationship between financial literacy, risk tolerance and financial decision making of investors through exploratory research tools. For explaining this relationship researcher gives a mediation model. By using this mediation model a direct relationship between Financial Literacy and Risk Tolerance and between Financial Literacy and Investment Decision via Risk Tolerance, can be explored.

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“…The above list is an indication of a potentially long and rich risk-oriented research agenda at the intersection of entrepreneurship and internationalization with advances in some and questions remaining in others. The reader is encouraged to consult the fastdeveloping literature addressing some of the above issues and questions (As starting point, for example see, Anderson et al 2009;Ball et al 2010;Etchart-Vincent et al 2011;Cheung et al 2013;Löhndorf, et al 2014;West et al 2014).…”

Section: Summary Highlight Of Articles Their Respective Linkages Andmentioning

confidence: 99%

The principal components of the international entrepreneurial orientation-performance relation and its linkages with the key concepts and key constructs in the present issue

Etemad

2015

J Int Entrep

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This Editorial Note highlights the four articles appearing in this issue of the Journal of International Entrepreneurship in the context of the impact of international entrepreneurial orientation on internationalperformance (IEO-P Relations). Aspects of entrepreneurial risk-taking, innovativeness and internationalization are respectively discussed by the second and third articles, while entrepreneurial, innovative and international marketing orientations in relations to firm capabilities are discuss in the third article. The fourth article explores aspects of entrepreneurial orientation internationally. The impact of a rich set of different moderating factors are pointed out by the four articles. Some coplementary research questions are also pointed out.

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Macroeconomic Conditions and Australian Financial Risk Attitudes, 2001–2010

Cited by 46 publications

References 40 publications

“Fair go” for all? Wealth and Risk Aversion of Australian Households*

“Fair go” for all? Wealth and Risk Aversion of Australian Households*

“Impact of financial literacy and Risk Tolerance on Investment Decision”

The principal components of the international entrepreneurial orientation-performance relation and its linkages with the key concepts and key constructs in the present issue

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