Abstract
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 language | English |
|---|---|
| Pages (from-to) | 73-82 |
| Number of pages | 10 |
| Journal | Journal of Financial Counseling and Planning |
| Volume | 15 |
| Issue number | 1 |
| State | Published - 2004 |
Keywords
- Financial knowledge
- Risk tolerance
- Self-esteem