Behavioural propensities and financial risk tolerance: The moderating effect of ethnicity
Purpose The purpose of this paper is to explore the influence of several core behavioural propensities on financial risk tolerance (FRT). Additionally, this paper examines the moderating effect of ethnicity on the relationship between behavioural propensities and FRT. Design/methodology/approach A s...
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my.um.eprints.372222023-03-10T02:28:02Z http://eprints.um.edu.my/37222/ Behavioural propensities and financial risk tolerance: The moderating effect of ethnicity Rahman, Mahfuzur Albaity, Mohamed Isa, Che Ruhana HC Economic History and Conditions Business Purpose The purpose of this paper is to explore the influence of several core behavioural propensities on financial risk tolerance (FRT). Additionally, this paper examines the moderating effect of ethnicity on the relationship between behavioural propensities and FRT. Design/methodology/approach A sample of 1,204 completed and usable questionnaires were collected from undergraduate students majoring in business, economics and finance and analysed them using SmartPLS 2.0 software. Findings The findings reveal that propensity for trust has the highest impact on FRT followed by propensity for regret and happiness in life, while propensity for social interaction is not significantly associated with FRT. Ethnicity significantly moderates the relationship between three behavioural propensities (propensity for regret, propensity for trust and happiness in life) and FRT. Originality/value This study contributes to the assessment of individuals' FRT incorporating behavioural propensities, which in turn contributes to the field of behavioural finance. Emerald Group Publishing Ltd 2020-08-10 Article PeerReviewed Rahman, Mahfuzur and Albaity, Mohamed and Isa, Che Ruhana (2020) Behavioural propensities and financial risk tolerance: The moderating effect of ethnicity. International Journal of Emerging Markets, 15 (4). pp. 728-745. ISSN 1746-8809, DOI https://doi.org/10.1108/IJOEM-01-2018-0024 <https://doi.org/10.1108/IJOEM-01-2018-0024>. 10.1108/IJOEM-01-2018-0024 |
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HC Economic History and Conditions Business Rahman, Mahfuzur Albaity, Mohamed Isa, Che Ruhana Behavioural propensities and financial risk tolerance: The moderating effect of ethnicity |
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Purpose The purpose of this paper is to explore the influence of several core behavioural propensities on financial risk tolerance (FRT). Additionally, this paper examines the moderating effect of ethnicity on the relationship between behavioural propensities and FRT. Design/methodology/approach A sample of 1,204 completed and usable questionnaires were collected from undergraduate students majoring in business, economics and finance and analysed them using SmartPLS 2.0 software. Findings The findings reveal that propensity for trust has the highest impact on FRT followed by propensity for regret and happiness in life, while propensity for social interaction is not significantly associated with FRT. Ethnicity significantly moderates the relationship between three behavioural propensities (propensity for regret, propensity for trust and happiness in life) and FRT. Originality/value This study contributes to the assessment of individuals' FRT incorporating behavioural propensities, which in turn contributes to the field of behavioural finance. |
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Article |
author |
Rahman, Mahfuzur Albaity, Mohamed Isa, Che Ruhana |
author_facet |
Rahman, Mahfuzur Albaity, Mohamed Isa, Che Ruhana |
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Rahman, Mahfuzur |
title |
Behavioural propensities and financial risk tolerance: The moderating effect of ethnicity |
title_short |
Behavioural propensities and financial risk tolerance: The moderating effect of ethnicity |
title_full |
Behavioural propensities and financial risk tolerance: The moderating effect of ethnicity |
title_fullStr |
Behavioural propensities and financial risk tolerance: The moderating effect of ethnicity |
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Behavioural propensities and financial risk tolerance: The moderating effect of ethnicity |
title_sort |
behavioural propensities and financial risk tolerance: the moderating effect of ethnicity |
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Emerald Group Publishing Ltd |
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2020 |
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http://eprints.um.edu.my/37222/ |
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1761616812491931648 |
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13.15806 |