What variable that financial risk tolerance influence with author?
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Financial risk tolerance influences several variables with different authors. Arora and Mishra found that risk tolerance is influenced by bull and bear market phases, age, and professional work experience (PWE) in emerging economies . Lobão found that gender influences financial risk tolerance, with males being more risk-tolerant than females . Khan explored the relationship between demographics, opinion/attitudes, and investor characteristics with financial risk tolerance in a developing country . Hemrajani and Sharma examined the influence of urgency on financial risk-taking behavior and found a significant relationship . Thanki, Karani, and Goyal studied various behavioral and psychological factors, such as financial anxiety, financial satisfaction, obsession with money, personality type, self-esteem, and sensation-seeking behavior, and their correlation with financial risk tolerance .
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5 Citations | The paper does not mention any variable that financial risk tolerance influences with the author. |
Open access•Journal Article 7 Citations | The paper does not mention any variable that financial risk tolerance influences with the author. |
Open access•Journal Article 8 Citations | The paper does not explicitly mention the specific variable that financial risk tolerance influences with the author. |
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| The paper does not mention any specific variable that financial risk tolerance influences with the author. |
Related Questions
How does financial stress and anxiety affect investment risk tolerance and decision-making strategies?5 answersFinancial stress and anxiety significantly impact investment risk tolerance and decision-making strategies. Financial stress can increase sensitivity to uncertainty, leading individuals to be risk-averse or excessive risk-takers. Stress generally increases risk-taking behavior, while anxiety tends to make individuals more risk-averse. Default options, acting as nudges, can facilitate investment decisions for anxious, avoidant, rational, and dependent individuals. The experience of financial stress can impair executive functions related to self-control, influencing present-focused economic decisions. Moreover, during high financial stress episodes, economic growth, consumption, and investment moderation are observed, indicating a non-linear trade-off between financial stress and macroeconomic indicators. Overall, financial stress and anxiety play crucial roles in shaping investment risk tolerance and decision-making strategies.
How is indonesian people financial risk tolerance?4 answersThe level of financial risk tolerance among Indonesian people varies. Studies have shown that Indonesian millennials have a moderate level of risk tolerance, with factors such as gender, geographical location, and financial literacy significantly influencing their risk tolerance. In terms of crypto-asset investing, younger Indonesian males with higher risk tolerance and previous equity investing experience are more likely to invest in crypto assets. For Indonesian retail investors, socio-demographic factors such as age, gender, marital status, education, and income have been found to affect financial risk tolerance, while ethics do not have a significant impact. Financial literacy is a concern in Indonesia, with low levels of financial literacy contributing to illegal investments. Efforts to improve financial literacy are targeted towards specific groups, such as women and housewives. Overall, the financial risk tolerance of Indonesian people is influenced by various factors and varies among different demographic groups.
How can financial decision making and risk tolerance be interrelated?4 answersFinancial decision making and risk tolerance are interrelated in several ways. Personality traits, such as conscientiousness, neuroticism, and openness to experience, have been found to influence risk tolerance and investment decisions. Additionally, financial literacy has a positive impact on investment decision-making behavior and financial risk tolerance. Risk tolerance has been shown to partially mediate the relationship between psychological factors and investment inclinations. Furthermore, risk tolerance influences risky-asset allocation directly and indirectly through risk perception. It is important for financial advisors to accurately assess both risk tolerance and risk perception in order to provide quality advice and fully capture the client's risk profile. Overall, understanding one's personality traits, financial literacy, and risk tolerance is crucial in making informed financial decisions.
What are the factors that influence risk tolerance?5 answersFactors that influence risk tolerance include psychological factors such as propensity for regret, trust, overconfidence, and social interaction. Positive emotional state and age also play a role in determining financial risk tolerance. In addition, incentive motivation and risk tolerance, as well as self-control power and self-assessment, have direct and indirect effects on risky decision making. Demographic factors such as marital status, income, and education are important in determining risk tolerance. Sociodemographic factors such as age, gender, marital status, education, and income also have an effect on financial risk tolerance, with multidimensional risk potentially mediating this relationship.
How Risk tolerance impact investment decisions?5 answersRisk tolerance has a significant impact on investment decisions. It plays a mediating role between financial literacy, investor's personality, overconfidence bias, and investment decisions. Financial literacy, investor's personality, and overconfidence bias are all significantly related to risk tolerance and investment decisions. However, risk tolerance questionnaires are not effective in predicting investor risk-taking behavior. Other factors such as demographic data, return expectations, and investment experience are better predictors of investor behavior. Understanding one's risk tolerance and maintaining a long-term investment horizon can contribute to more rational and informed investment decisions. Additionally, risk tolerance directly influences investment decisions, while financial literacy and demographic factors do not have a direct impact.
How does risk tolerance influence investment decisions?5 answersRisk tolerance plays a significant role in investment decisions. It is found that risk tolerance is influenced by factors such as financial literacy, investor's personality, and overconfidence bias. These factors have a direct impact on an individual's risk tolerance, which in turn affects their investment decisions. Additionally, risk tolerance is also influenced by demographic data, return expectations, and investment experience. Understanding an investor's risk tolerance is crucial for advisors to ensure that the selected portfolio aligns with the investor's risk appetite and goals. Therefore, risk tolerance is an important consideration in investment decision-making, as it helps individuals and advisors make informed choices that are in line with their risk preferences and objectives.