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

File reproduced in accordance with the copyright policy of the publisher/author.

Byline AffiliationsSchool of Accounting, Economics and Finance
Permalink -

https://research.usq.edu.au/item/9yy20/investor-risk-tolerance-and-general-economic-mood

Log in to edit

Download files

Published Version
Santacruz_2008_IBR_PV.pdf
File access level: Anyone

  • 1849
    total views
  • 280
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as

Related outputs

Asset class return connectedness during the last two global shocks GFC and Covid
Santacruz, Lujer. 2021. "Asset class return connectedness during the last two global shocks GFC and Covid." 2021 Financial Planning Academics Forum. Brisbane, Australia 26 Nov 2021
Toward a practical measure of firm risk-taking: revisiting Bowman’s paradox
Santacruz, Lujer. 2018. "Toward a practical measure of firm risk-taking: revisiting Bowman’s paradox ." 31st Australasian Finance and Banking Conference. Sydney, Australia 13 - 15 Dec 2018 Sydney, Australia.
Wealth management and financial advisory services in the Asia-Pacific region
Santacruz, Lujer. 2017. "Wealth management and financial advisory services in the Asia-Pacific region." 8th Global Business and Finance Research Conference. Taipei, Taiwan 26 - 28 Oct 2017
Measures of firm risk-taking: revisiting Bowman’s paradox
Santacruz, Lujer. 2020. "Measures of firm risk-taking: revisiting Bowman’s paradox." Managerial Finance. 46 (3), pp. 421-434. https://doi.org/10.1108/MF-09-2019-0466
Wealth management and financial advisory services in the Asia-Pacific region
Santacruz, Lujer. 2018. "Wealth management and financial advisory services in the Asia-Pacific region." The Journal of Wealth Management. 21 (3), pp. 95-115. https://doi.org/10.3905/jwm.2018.1.066
Asset allocation: analysis of theory and practice in the Australian investment management industry
Santacruz, Lujer. 2014. "Asset allocation: analysis of theory and practice in the Australian investment management industry." 27th Australasian Finance and Banking Conference (AFBC 2014). Sydney, Australia 16 - 18 Dec 2014 Sydney, Australia.
Dealer group or financial planning group? A brief technical note
Santacruz, Lujer. 2011. "Dealer group or financial planning group? A brief technical note." Australasian Accounting Business and Finance Journal. 5 (2), pp. 127-134.
Dealer group or financial planning group?
Santacruz, Lujer. 2011. "Dealer group or financial planning group?" Financial Planning. 23 (10), pp. 42-45.
Strategic asset allocation and portfolio performance
Santacruz, Lujer. 2012. "Strategic asset allocation and portfolio performance." 18th International Business Research Conference. Las Vegas, NV. United States 28 - 30 Oct 2012 Australia.
Corporate risk returns and economic outlook, Australian data
Santacruz, Lujer. 2016. "Corporate risk returns and economic outlook, Australian data." 29th Australasian Finance and Banking Conference (AFBC 2016). Sydney, Australia 14 - 16 Dec 2016 Sydney, Australia.
Asset allocation theory and practice in Australian investment management: reasons for the dichotomy
Santacruz, Lujer. 2016. "Asset allocation theory and practice in Australian investment management: reasons for the dichotomy." The Journal of Wealth Management. 19 (3), pp. 31-48. https://doi.org/10.3905/jwm.2016.19.3.031
Asset allocation theory and practice in Australian investment management
Santacruz, Lujer. 2016. "Asset allocation theory and practice in Australian investment management." The Journal of Wealth Management. 19 (2), pp. 47-67.
Asset allocation: analysis of theory and practice in the Australian investment management industry
Santacruz, Lujer. 2015. Asset allocation: analysis of theory and practice in the Australian investment management industry. PhD Thesis Doctor of Philosophy. University of Southern Queensland.
Financial planning value proposition: Laying the groundwork based on clients’ perspective
Santacruz, Lujer and Brimble, Mark. 2014. "Financial planning value proposition: Laying the groundwork based on clients’ perspective." 3rd Annual Personal Finance and Investment Symposium. Adelaide, South Australia 11 Nov 2015
What do academics think of asset allocation theory?
Santacruz, Lujer. 2014. "What do academics think of asset allocation theory?" Bhuiyan, Md. Mahbubul Hoque (ed.) World Business, Finance and Management Conference (WBFM 2014): Research for Progress. Auckland, New Zealand 08 - 09 Dec 2014 Melbourne, Australia.
The importance of strategic asset allocation
Santacruz, Lujer. 2013. "The importance of strategic asset allocation." Journal of Business and Economics. 4 (3), pp. 242-247.
Dealer group or financial planning group? A case for changing the industry terminology
Santacruz, Lujer. 2010. "Dealer group or financial planning group? A case for changing the industry terminology." Jahan, Nuha (ed.) 13th International Business Research Conference. Melbourne, Australia 22 - 24 Nov 2010 Melbourne, Australia.
Personal financial planning in Australia: an industry analysis
Santacruz, Lujer and Lukashenok, Aleksej. 2009. "Personal financial planning in Australia: an industry analysis." Benson, Karen and Ding, David (ed.) AsianFA 2009: Asian Finance Association International Conference. Brisbane, Australia 30 Jun - 03 Jul 2009 Brisbane, Australia.
Effect of general economic mood on investor risk tolerance - implications for financial planning
Santacruz, Lujer. 2009. "Effect of general economic mood on investor risk tolerance - implications for financial planning." JASSA. 2009 (1), pp. 35-42.
Are benchmark asset allocations for Australian private investors optimal?
Santacruz, Lujer and Phillips, Peter J.. 2009. "Are benchmark asset allocations for Australian private investors optimal?" The Journal of Wealth Management. 12 (2), pp. 60-70. https://doi.org/10.3905/JWM.2009.12.2.060
Optimality of financial planning clients' strategic asset allocation
Santacruz, Lujer and Phillips, Peter J.. 2007. "Optimality of financial planning clients' strategic asset allocation." Moshirian, Fariborz (ed.) 20th Annual Australasian Finance and Banking Conference (AFBC 2007). Sydney, Australia 12 - 14 Dec 2007 Sydney, Australia.
Direct share ownership as a diffusion phenomenon
Santacruz, Lujer. 2007. "Direct share ownership as a diffusion phenomenon." Hoque, Mohammad Ziaul (ed.) 7th International Business Research Conference. Sydney, Australia 03 - 06 Dec 2007 Melbourne, Australia.