Determinants of Risk Taking Behavior: The role of Risk Attitudes, Risk Perceptions and Beliefs
Year: 2007
Type: report
Study design: Observational Study
Abstract: Our study analyzes determinants of investors' risk taking behavior. We find that investors' risk taking behavior, i.e. portfolio choices can be predicted using risk attitudes, risk perceptions and belief measures such as optimism and overconfidence. However, the predictive power of these determinants heavily depends on the domain in which it was elicited. More specifically, risk attitudes, risk perceptions and beliefs only allow us to predict investors' risk taking behavior if they are elicited in an investment related context. We think that our results could also benefit practitioners who could incorporate some of the determinants we have used in their investment advisory process.
Source: MADOC (University of Mannheim)
Authors: Alen Nosić, Martin Weber
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
Award: G2846299926
OpenAlex ID: W1502854687