Individual financial risk tolerance and the global financial crisis

Title: Individual financial risk tolerance and the global financial crisis
Creator: Gerrans, Paul; Faff, Robert; Hartnett, Neil
Relation: Accounting & Finance Vol. 55, Issue 1, p. 165-185
Publisher Link: http://dx.doi.org/10.1111/acfi.12053
Publisher: Wiley-Blackwell Publishing
Resource Type: journal article
Date: 2015
Description: 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.
Identifier: http://hdl.handle.net/1959.13/1313226
Identifier: uon:22549
Identifier: ISSN:0810-5391
Language: eng
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