Environmental and biopsychosocial factors associated with financial risk tolerance

John E. Grable, So Hyun Joo

Research output: Contribution to journalArticlepeer-review

132 Scopus citations


The effects of environmental and biopsychosocial factors on financial risk tolerance is analyzed. The research is premised on Irwin's (1993) risk-taking behavioral model. Findings from an OLS regression, using a sample of faculty and staff from two universities (N = 406), indicate that education, marital status, net worth, financial knowledge, and household income, as environmental factors, are related to financial risk tolerance. A significant biopsychosocial factor associated with financial risk tolerance is self-esteem. Findings from this study confirm Irwin's recommendation that further research should take into account both environmental and biopsychosocial factors when attempting to explain financial risk-tolerance attitudes.

Original languageEnglish
Pages (from-to)73-82
Number of pages10
JournalJournal of Financial Counseling and Planning
Issue number1
StatePublished - 2004


  • Financial knowledge
  • Risk tolerance
  • Self-esteem


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