Investor risk tolerance and general economic mood

Santacruz, Lujer (2008) Investor risk tolerance and general economic mood. In: 9th International Business Research Conference, 24-26 Nov 2008, Melbourne, Australia.

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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.

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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Deposited with blanket permission of publisher.
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 01 Jan 2010 22:42
Last Modified: 02 Jul 2013 23:11
Uncontrolled Keywords: risk tolerance, economic mood, personal investor, risk assessment, financial planning
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
Socio-Economic Objective: B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900102 Investment Services (excl. Superannuation)

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