Southeast Asian Business Review
Vol. 1 No. 2 (2023)

How Demographics and General Economic Mood Affect Investor Risk Tolerance?

Restana, Median Dwi (Unknown)
Komalasari, Puput Tri (Unknown)



Article Info

Publish Date
28 Nov 2023

Abstract

Investment decisions made "‹"‹by investors are strongly influenced by their risk tolerance. Individual risk tolerance will influence their asset allocation decision. This paper used primary data to examine the factors influencing investor risk tolerance. Two factors considered in this study are demographics and general economic mood. Demographic characteristics include gender, occupation, age, marital status, income, and education. General economic mood is people's perceptions about the prospects for a country's economy at present and in the future. Using convenience sampling, we distributed questionnaires to investors in the Indonesia Stock Exchange and senior students. The total number of data used in this research is 200 respondents. This research found that the general economic mood, gender, and occupation positively impact investor risk tolerance. In contrast, our research found the negative impact of education and average monthly income on investors' risk tolerance. Further, age and marital status do not affect the investor's risk tolerance. This finding is important for financial planners to advise on personal investment decisions.

Copyrights © 2023






Journal Info

Abbrev

SABR

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The SABR is committed to publishing the high quality articles from business and management perspectives in regards to within and between the Southeast Asian region. The covered domains but not limited to, such as: Marketing management, Finance, and management accounting, Strategic management, ...