Women are scaredy-cats and men are conquerors?

Hari, Jürg J.; Pirsch, Elisabeth; Rawitzer, Heike

doi:10.1057/s41264-018-0045-x

Cited by 5 publications

(3 citation statements)

References 57 publications

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“…Similarly, Bollen and Posavac (2018) found no significant gender difference in the risk tolerance of professional wealth managers. The Study by Hari et al (2018) further supports the role of financial literacy in risk-taking attitudes. The study showed no significant difference between men and women concerning their risk attitude, given both had similar experiences and financial knowledge.…”

Section: Moderating Role Of Financial Literacymentioning

confidence: 53%

Financial literacy–a regulator of intended investment behaviour: analysing the hypothetical portfolio composition

Rodrigues,

Gopalakrishna

2023

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PurposeThe investment behaviour of individuals has been a major area of interest for several researchers and policymakers due to its great impact on the economy. This study aimed to assess the investment behaviour of individuals in light of their risk appetite and how financial literacy regulates this relationship.Design/methodology/approachA self-administered structured questionnaire was used to collect responses from individuals using purposive and convenience sampling techniques. Individuals were presented with 16 investment avenues widely offered by the Indian financial market to choose from to construct a hypothetical portfolio. The association between risk appetite, financial literacy and the composition of the hypothetical portfolio was analysed using a gologit model.FindingsIncreased risk appetite increased the probability of respondents creating a portfolio with a greater proportion of risky assets and less diversification. Lower levels of financial literacy pointed towards portfolios with traditional and low-risk avenues. The results also revealed a significant moderating impact of financial literacy on risk appetite and the creation of the type of a hypothetical portfolio.Research limitations/implicationsEven though the intended behaviour is a close estimate of actual behaviour, there is a possibility of deviation that cannot be ignored.Originality/valueThe present study provides insights into how individuals make portfolio choices by incorporating risk appetite and diversification factors whilst making investment decisions, thereby expanding the literature from an emerging economy perspective. The role of financial literacy as a moderator has not been studied in the domain of hypothetical portfolio creation in India, which has been empirically explored in the current study.

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Section: Moderating Role Of Financial Literacymentioning

confidence: 53%

Financial literacy–a regulator of intended investment behaviour: analysing the hypothetical portfolio composition

Rodrigues,

Gopalakrishna

2023

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“…Sung and Hanna (1996) and Huston et al (1997) find that gender, marital status, ethnicity and education predict risk tolerance. However, Grable and Joo (1997), Hanna et al (2001) and Hari et al (2018) find that gender is not significant in predicting financial risk tolerance.…”

Section: Conceptual Framework Previous Research and Hypothesesmentioning

confidence: 99%

Run for the hills: Italian investors' risk appetite before and during the financial crisis

Lippi

Rossi

2020

IJBM

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PurposeThis paper sets out to corroborate the existing literature on investors' risk tolerance and to assess how the 2008 financial crisis has affected risk tolerance among Italian investors.Design/methodology/approachBased on a unique dataset of real-world portfolio choices made by 1,245 Italian investors over a period of 15 years (from 2003 to 2017), this paper presents two steps of analysis. In step 1, the whole period 2003–2017 is considered with the aim to integrate and corroborate the existing literature on the topic of risk tolerance, considering a complete economic and financial cycle. Step 2 took 2008 as the pivotal point between pre-crisis (2003–2008) and crisis (2009–2017) with the aim to observe the influence on risk appetite of the economic and financial effects of the crisis.FindingsThe results obtained confirm that men are more risk tolerant than women and older people are less risk-taking than their younger counterparts, although the relationship between age and risk tolerance is not necessarily linear. Moreover, our paper demonstrates that a crisis scenario has an influence on Italian investors' risk tolerance.Practical implicationsOur results are of interest to financial advisors, financial planners, asset managers, psychologists, behavioral researchers and more in general to providers of financial products and services.Originality/valueThe results presented in this paper are relevant and original because they are based on real investors who made real choices concerning their portfolio asset allocations.

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“…For instance, an individual's financial risk tolerance affects their routine debt-versus-savings decisions, the choice of mortgage (Grable 1999), credit card adoption (Cope et al ., 2013) and management (Campbell, 2006), pattern of expenditure (long-term vs short-term) (Sung et al ., 1996), insurance purchase (Shusha 2017), and distribution of assets (Nguyen et al ., 2019). Moreover, financial regulatory authorities worldwide also require financial advisors to examine their clients' financial risk propensity before providing investment recommendations or executing financial investment strategies (Hari et al, 2018). Countries such as the USA, the UK, Australia, and Canada have specific laws mandating the assessment of customers' risk tolerance by financial advisors (Wahl et al ., 2020) .…”

Section: Introductionmentioning

confidence: 99%

Beyond the Big Five: How Dynamic Personality Traits Predict Financial Risk Tolerance?

Mukhtar,

Jan,

Zahoor

2023

Acta Universitatis Sapientiae, Economics and Business

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The present study examines the impact of dynamic personality traits (emotions, financial self-efficacy, trait anger, resilience, and intolerance of uncertainty) on the financial risk tolerance of an investor. To that end, the study uses data collected from 486 stock market investors adopting a structured questionnaire, and the hypothesised relationships are evaluated through structural equation modelling. Results indicate that financial self-efficacy, positive emotion, and resilience improve the investor’s financial risk tolerance, whereas intolerance of uncertainty, trait anger, and negative emotions bear a negative influence on financial risk tolerance. These findings are novel to the financial risk tolerance literature and deepen our understanding of the precursors of risky investment behaviour. Further, this study entails several practical implications for financial advisors and wealth managers.

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Women are scaredy-cats and men are conquerors?

Cited by 5 publications

References 57 publications

Financial literacy–a regulator of intended investment behaviour: analysing the hypothetical portfolio composition

Financial literacy–a regulator of intended investment behaviour: analysing the hypothetical portfolio composition

Run for the hills: Italian investors' risk appetite before and during the financial crisis

Beyond the Big Five: How Dynamic Personality Traits Predict Financial Risk Tolerance?

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