Business Networks Influence on Financial Risk Tolerance Attitudes

Speculative capital markets are frequently characterized by actors possessing not simply specific industry sector knowledge, but probable higher risk tolerances, or a greater willingness to accept risk and invest, in contrast to other more risk-adverse investors (Hirshleifer 1975). With financial risk tolerances proving an important driver of individual investment, and collective risk-taking behaviors and perceptions, we find limited literature exploring the influence of actors’ collective interactions, connected relationships, or contagion effects of informal knowledge and information sharing, in shaping individual and collective groups’ risk tolerances attitude within a financial ecosystem.
Our research objective therefore seeks to explore the influence of individuals interactions and collective relationships in shaping financial risk tolerance attitudes, and whether associations or connections to a collective group of perceived higher financial risk tolerances, as characterised within higher risk speculative markets, is perceived to support mutually beneficial, cooperative advantages when undertaking a higher risk capital raising (Fainshmidt & Frazier 2017)