Financial risk tolerance

An analysis of unexplored factors

Authors

  • Ryan Gibson Strategy Team, Woolworths limited
  • David Michayluk UTS Business School, University of Technology, Sydney
  • Gerhard Van de Venter UTS Business School, University of Technology, Sydney

DOI:

https://doi.org/10.61190/fsr.v22i1.4641

Keywords:

Financial risk tolerance, Risk assessment, Financial planning, Financial advisors

Abstract

Using data from a survey alliance between Kiplinger's Personal Finance Magazine, PBS's Nightly Business Report, and FinaMetrica, this study explores various demographical and attitudinal factors related to financial risk tolerance. Investigating risk tolerance scores of more than 2,000 individuals immediately after the 2008 Global Financial Crisis, we find a positive relationship between risk tolerance and income, investment knowledge and positive stock market expectations. Risk tolerance is found to be lower for females, older individuals, those that currently use a financial advisor and individuals that perceive the stock market to be riskier than two years before.

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Published

2013-03-31

How to Cite

Gibson, R., Michayluk, D., & Van de Venter, G. (2013). Financial risk tolerance: An analysis of unexplored factors. Financial Services Review, 22(1), 25–50. https://doi.org/10.61190/fsr.v22i1.4641

Issue

Vol. 22 No. 1 (2013): FSR Spring 2013

Section

New Original Submission

License

Copyright (c) 2013 Academy of Financial Services

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