Individual financial risk tolerance and the global financial crisis

Paul Gerrans, R. Faff, N. Hartnett

Research output: Contribution to journalArticle

15 Citations (Scopus)

Abstract

© 2013 AFAANZ. We investigate individual investors' tolerance towards financial risk by focusing on changes associated with the global financial crisis (GFC) of 2007-2009. Financial risk tolerance (FRT) is analysed longitudinally controlling for demographic, socio-economic and regional variations. In absolute terms, the change in FRT is small and contrasts with a popular view that risk tolerance is an elastic psychological state overly influenced by the pervading market conditions. Even in the presence of significant financial events, FRT tends to be a reasonably stable attribute in the shorter term but possibly influenced and reshaped by events more gradually over time.
Original languageEnglish
Pages (from-to)165-185
JournalAccounting and Finance
Volume55
Issue number1
DOIs
Publication statusPublished - 2015

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Financial risk
Global financial crisis
Risk tolerance
Demographics
Market conditions
Psychological
Socio-economics
Tolerance
Individual investors
Regional variation

Cite this

Gerrans, Paul ; Faff, R. ; Hartnett, N. / Individual financial risk tolerance and the global financial crisis. In: Accounting and Finance. 2015 ; Vol. 55, No. 1. pp. 165-185.
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Individual financial risk tolerance and the global financial crisis. / Gerrans, Paul; Faff, R.; Hartnett, N.

In: Accounting and Finance, Vol. 55, No. 1, 2015, p. 165-185.

Research output: Contribution to journalArticle

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