 A longitudinal study of financial risk toleranceGerhard Van de Venter (), David Michayluk () and Geoff Davey Journal of Economic Psychology, 2012, vol. 33, issue 4, 794-800 Abstract: Academics are divided as to whether financial risk tolerance is an enduring psychological trait and as a consequence is less likely to change over the life of an individual, or a variable psychological state which varies readily in response to internal and external influences. In this study we report the findings of a longitudinal study that investigates the annual change in financial risk tolerance scores of individuals over a 5year period and the factors that influence such change. Our results indicate a relatively small annual change in individuals’ financial risk tolerance. Although our regression model is ineffective in providing a clarification for a change in the financial risk tolerance scores of individual respondents, we find a slight decrease in financial risk tolerance associated with a decrease in household size and an increase in financial risk tolerance after terminating the services of a financial planner. From our results we propose that financial risk tolerance is a stable personality trait and is unlikely to change substantially over the life of an individual. Keywords: Financial risk tolerance; Risk assessment; Financial planning; Longitudinal study (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:33:y:2012:i:4:p:794-800 DOI: 10.1016/j.joep.2012.03.001 Access Statistics for this article Journal of Economic Psychology is currently edited by G. Antonides and D. Read More articles in Journal of Economic Psychology from Elsevier |
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