Refine your search
Collections
Co-Authors
Year
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All
Parikh, Abhishek Kiritkumar
- Impact of Risk Tolerance and Demographic Factors on Financial Investment Decision
Abstract Views :231 |
PDF Views:0
Authors
Affiliations
1 V. M. Patel Institute of Management, Ganpat University, Gujarat, IN
1 V. M. Patel Institute of Management, Ganpat University, Gujarat, IN
Source
International Journal of Financial Management, Vol 8, No 1 (2018), Pagination: 36-48Abstract
Risk tolerance is popularly used in the personal financial planning industry to understand an investor’s attitude towards risk. In the twenty-first century, it is very important for the various investment firms, fund managers, financial planners to understand financial investment decisions of an investor for developing a strategy for the sale of their investment products in market. However, financial decisions of an individual not only depend on financial risk-tolerance level, but also upon different demographic factors. Thus, this study is undertaken to develop a model that helps in understanding impact of risk tolerance and demographic factors jointly on investment decision; especially, a decision related to level of investment. Also, investor may be having higher risk tolerance for the calculative investment but may be having lover risk tolerance in speculative investment. So, based on extensive literature support, this research has tried to propose a model for understanding the impact of investment risk tolerance, capital risk tolerance, speculative risk tolerance, and six important demographic variables jointly on investment decision. Thus, this study would be helpful to investment firms in understanding impact of risk tolerances and demographic variables jointly on level of investment of investors, which can be used for designing a strategy or investment product to offer to the investors with different levels of financial risk tolerance and different demographic profiles.Keywords
Demographic Factors, Investment Decision, Investment Firm, Investors, Risk Tolerance.
References
- Bajtelsmit, V., & Bernasek, A. (1996). Why do women invest differently than men? Financial Counseling and Investing, 7, 1-10.
- Baker, H. K., & Haslem, J. A. (1974). The impact of investor socioeconomic characteristics on risk and return preferences. Journal of Business Research, 2, 469-476
- Barskey, R., Kimball, M., & Shapiro, M. (July 1996). Preference parameters and behavioral homogeneity: An experimental approach in health and retirement survey. National Bureau of Economic Research, Working Paper Series No. 5667.
- Bernheim, B. D., Skinner, J., & Weinberg, S. (2001). What Accounts for the Variation in Retirement Wealth among US Households. American Economic Review, 91, 832-857.
- Bernstein, P. L. (1996). Against the gods: The remarkable story of risk. New York: Wiley
- Blume, M. (1978). The changing role of the individual investor. New York: John Wiley & Sons, Inc
- Bruce, A., & Johnson, J. (1994). Male and female betting behavior: New perspectives. Journal of Gambling Studies, 10, 183-198.
- Carducci, B., & Wong, A. (1998). Type A and risk taking in everyday money matters. Journal of Business and Psychology, 12(3), 355-359.
- Cohn, R. A., Lewellen, W. G., Lease, R. C., & Schlarbaum, G. G. (1975). Individual investor risk aversion and investment portfolio composition. Journal of Finance, 30, 605-662
- Cordell, D. M. (2001). RiskPACK: How to evaluate risk tolerance. Journal of Financial Planning, 14, 36-40.
- Davey, G. (2000). Risk tolerance, risk profiling and the financial planning process. Econometrica, 47, 263-291.
- Elder, H. W., & Rudolph, P. M. (2003). Who makes financial decisions in the household of older Americans?Financial Services Review, 12(4), 293-308.
- Friedman, B. (1974), “Risk aversion and the consumer choice of health insurance option. The Review of Economics and Statistics, 56, 209-214.
- Grable, J E., & Joo, S. (1999). Factors related to risk tolerance: A further examination. Consumer Interests Annual, 45, 53-58.
- Grable, J., & Joo, S. (2000). A cross-disciplinary examination of financial risk tolerance. Consumer Interests Annual, 46, 151-157.
- Grable, J. E. (2000). Financial risk tolerance and additional factors that affect risk taking in everyday money matters. Journal of Business and Psychology, 14, 625-630.
- Grable, J. E., & Lytton, R. H. (1999). Assessing financial risk tolerance: Do demographic, socioeconomic and attitudinal factors work? Family Relations and Human Development/Family Economics and Resource, Management Biennial, 80-88.
- Haliassos, M., & Bertaut, C. C. (1995). Why do so few hold stocks? The Economic Journal, 105, 1110-1129.
- Hanna, S. D., & Lindamood, S. (2005). Risk tolerance of married couples. Paper presented at the 2005 Academy of Financial Services
- Hanna, S. D., & Lindamood, S. (2004). An improved measure of risk aversion. Financial Counseling and Planning, 15(2), 27-38.
- Holtgrave, D., & Weber, E. (1993). Dimensions of risk perception for financial and health risks. Risk Analysis, 13(5), 553-559.
- Jianakopolis, N., & Bernasek, A. (1998). Are women more risk averse?. Economic Inquiry, 36(4), 620-630.
- Kahneman, D., & Tversky, A. (1984). Choices, values, and frames. American psychologist, 39, 341-350.
- Keynes, J. M. (1921). A treatise on probability. London: Macmillan.
- Keynes, J. M. (1937). The general theory of employment, interest and money. New York: Harcourt, Brace.
- Knight, F. H. (1921). Risk, uncertainty and profit. New York: Century Press.
- Leimberg, S. R., Satinsky, M. J., LeClair, R. T., & Doyle, Jr. R. J. (eds.), The tools and techniques of financial planning (4th ed.), pp. 213-225, Cincinnati, OH: National Underwriter
- Levin, I. P., Johnson, R. D., Deldin, P. J., Carstens; L. M., Cressey, L. J., & Davis, C. R. (1986). Framing effects in decisions with completely and incompletely described alternatives. Organizational Behavior and Human Decision Processes, 38, 48-64.
- Liverant, S., & Scodel, A. (1960). Internal and external control as determinants of decision making under conditions of risk. Psychological Reports, 7, 59-67.
- MacCrimmon, K. R., & Wehrung, D. A. (1986). Taking risks. New York: The Free Press, p. 34
- Quattlebaum, O. (1988). Loss aversion: The key to determining individual risk. The journal of financial planning, 1(1), 66-68.
- Riley, W. B., & Chow, K. V. (1992). Asset allocation and individual risk aversion. Financial Analysts Journal, 48, 32-37.
- Roszkowski, M. (1996). Risk tolerance in financial decisions. In: Cordell, D. M. (ed.) Fundamentals of Financial Planning (3rd ed.), pp. 143-201
- Roszkowski, M., & Snelbecker, G. (1990). Effects of “framing” on measures of risk tolerance: Financial planners are not immune. The Journal of Behavioral Economics, 19(3), 237-246.
- Roszkowski, M. J., Delaney, M. M., & Cordell, D. M. (2004). The comparability of husbands and wives on financial risk tolerance. Journal of Personal Finance, 3(3), 129-144.
- Schooley, D. K., & Worden, D. D. (1996). Risk aversion measures: Comparing attitudes and asset allocation. Financial Services Review, 5, 87-99.
- Shaw, K. L. (1996). An empirical analysis of risk aversion and income growth. Journal of Labor Economics, 14, 626-653.
- Sitkin, S. B., & Pablo, A. L. (1992). Reconceptualizing the Determinants of Risk Behaviour. Academy of Management Review, 17, 9-38.
- Sulloway, F. J. (1997). Born to rebel: Birth order, family dynamics, and creative lives. Revised paperback edition, New York: Vintage
- Sung, J., & Hanna, S. (1996). Factors related to risk-tolerance. Financial Counseling and Planning, 7, 11-20.
- Sung, J., & Hanna, S. (1998). The spouse effect on participation and investment decisions for retirement funds. Financial Counseling and Planning, 9(2), 47-58.
- Sung, J., & Hanna, S. (1996). Factors related to household risk-tolerance: An ordered probit analysis. Consumer Interests Annual, 42, 227-228.
- Wallach, M. A., & Kogan, N. (1959). Sex differences and judgment processes. Journal of Personality, 27, 555-564.
- Wallach, M. A., & Kogan, N. (1961). Aspects of judgment and decision making: Interrelationships and changes with age. Behavioral Science, 6, 23-26.
- Wong, A., & Carducci, B. (1991). Sensation seeking and financial risk taking in everyday money matters. Journal of Business and Psychology, (5), 525-580.
- Yao, R., & Hanna, S. D. (2005). The effect of gender and marital status on financial risk tolerance. Journal of Personal Finance, 4(1), 66-85.
- Zuckerman, M. (1983). Biological biases of sensation seeking, impulsivity, and anxiety. Hillsdale, NJ: Lawrence Erlbaum Associates.