Investor risk tolerance and general economic mood

Paper

Santacruz, Lujer. 2008. "Investor risk tolerance and general economic mood." Hoque, Mohammad Ziaul (ed.) 9th International Business Research Conference. Melbourne, Australia 24 - 26 Nov 2008 Melbourne, Australia.
Paper/Presentation Title

Investor risk tolerance and general economic mood

Presentation TypePaper
Authors
AuthorSantacruz, Lujer
EditorsHoque, Mohammad Ziaul
Journal or Proceedings TitleProceedings of the 9th International Business Research Conference
Number of Pages15
Year2008
Place of PublicationMelbourne, Australia
ISBN9780980455703
Conference/Event9th International Business Research Conference
Event Details
9th International Business Research Conference
Parent
International Business Research Conference (IBR)
Delivery
In person
Event Date
24 to end of 26 Nov 2008
Event Location
Melbourne, Australia
Abstract

This paper examines whether there is a relationship between investor risk tolerance and general economic mood in the Australian context. Utilising suitable measures for the two constructs and controlling for the effects of demographic variables on investor risk tolerance, OLS regression analysis of a large dataset of investor risk tolerance scores over a time period indicates the absence of a relationship with general economic mood. T-tests comparing risk tolerance scores during optimistic and pessimistic months and during months preceded by positive and negative sharemarket returns validate the above conclusion. Implications on investment and personal financial planning advice as well as future areas for research are discussed.

Keywordsrisk tolerance, economic mood, personal investor, risk assessment, financial planning
ANZSRC Field of Research 2020350208. Investment and risk management
440499. Development studies not elsewhere classified
Public Notes

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Byline AffiliationsSchool of Accounting, Economics and Finance
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