Individual financial risk tolerance and the global financial crisis

Paul Gerrans; R. Faff; N. Hartnett

doi:10.1111/acfi.12053

Individual financial risk tolerance and the global financial crisis

Paul Gerrans
, R. Faff
, N. Hartnett

Research output: Contribution to journal › Article › peer-review

58 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 language	English
Pages (from-to)	165-185
Journal	Accounting and Finance
Volume	55
Issue number	1
DOIs	https://doi.org/10.1111/acfi.12053
Publication status	Published - 2015

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

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10.1111/acfi.12053

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Individual financial risk tolerance and the global financial crisis

Abstract

UN SDGs

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