 Retail Investors’ Financial Risk Tolerance and Risk-taking Behaviour: The Role of Psychological FactorsPragati Hemrajani, Rajni and Rahul Dhiman FIIB Business Review, 2024, vol. 13, issue 1, 87-105 Abstract: The aim of this article is to look at how two psychological factors affect financial risk tolerance (FRT) and financial risk-taking behaviour (FRB) of individual investors. The study also investigates the role of FRT in mediating the relationship between psychological factors and FRB. A standardized questionnaire was used to collect the information. For the study, a total of 303 completed questionnaires were used. The proposed research model was validated and assessed using partial least squares structural equation modelling. The findings revealed some important experiences. Emotional intelligence and impulsiveness have a significant relationship with both FRT and FRB, according to the results. The findings also support FRT’s position as a mediating factor in the proposed research model. The results emphasize the importance of psychological factors in determining an individual’s FRT and FRB. FRT is a complex mechanism that entails more than just psychological considerations. As a result, further research is needed to decide which additional factors financial advisors can use to increase the explained variance in FRT inequalities. Keywords: Financial risk tolerance; financial risk-taking behaviour; emotional intelligence; impulsiveness (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:sae:fbbsrw:v:13:y:2024:i:1:p:87-105 DOI: 10.1177/23197145211058274 Access Statistics for this article More articles in FIIB Business Review |
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