A structural equation model of financial risk tolerance in South Africa

Modelling investor behaviour in the South African context is important for investment companies to profile their clients. Various factors can influence the risk tolerance of investors. For the purpose of this research article, the emphasis was placed on demographics, life satisfaction and how risk-t...

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Autores principales:	Suné Ferreira, Zandri Dickason-Koekemoer
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2020
Materias:	gender age financial risk tolerance life satisfaction investors south africa Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/eebe9e9401ef43a0bfeb4727a76b6461
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id	oai:doaj.org-article:eebe9e9401ef43a0bfeb4727a76b6461
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spelling	oai:doaj.org-article:eebe9e9401ef43a0bfeb4727a76b64612021-12-02T18:23:58ZA structural equation model of financial risk tolerance in South Africa2331-197510.1080/23311975.2020.1811595https://doaj.org/article/eebe9e9401ef43a0bfeb4727a76b64612020-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1811595https://doaj.org/toc/2331-1975Modelling investor behaviour in the South African context is important for investment companies to profile their clients. Various factors can influence the risk tolerance of investors. For the purpose of this research article, the emphasis was placed on demographics, life satisfaction and how risk-taking behaviour and perception in several life domains influences risk tolerance. An electronic questionnaire was distributed to over 4 000 investors throughout South Africa. The final sample size was 1 065. Age and gender were found to significantly influence investor risk tolerance. A negative relationship was found between age and risk tolerance, indicative that risk tolerance decreases with age. Life satisfaction did also significantly contribute to predicting investor risk tolerance. The development of this risk tolerance structural equation model is unique in its existence, as it is the first model to incorporate demographics, life satisfaction, risk-taking behaviour and perception, and risk tolerance level in the South African context. As a result, these findings will make a significant contribution to the way financial investment companies profile their clients.Suné FerreiraZandri Dickason-KoekemoerTaylor & Francis Grouparticlegenderagefinancial risk tolerancelife satisfactioninvestorssouth africaBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 7, Iss 1 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	gender age financial risk tolerance life satisfaction investors south africa Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	gender age financial risk tolerance life satisfaction investors south africa Business HF5001-6182 Management. Industrial management HD28-70 Suné Ferreira Zandri Dickason-Koekemoer A structural equation model of financial risk tolerance in South Africa
description	Modelling investor behaviour in the South African context is important for investment companies to profile their clients. Various factors can influence the risk tolerance of investors. For the purpose of this research article, the emphasis was placed on demographics, life satisfaction and how risk-taking behaviour and perception in several life domains influences risk tolerance. An electronic questionnaire was distributed to over 4 000 investors throughout South Africa. The final sample size was 1 065. Age and gender were found to significantly influence investor risk tolerance. A negative relationship was found between age and risk tolerance, indicative that risk tolerance decreases with age. Life satisfaction did also significantly contribute to predicting investor risk tolerance. The development of this risk tolerance structural equation model is unique in its existence, as it is the first model to incorporate demographics, life satisfaction, risk-taking behaviour and perception, and risk tolerance level in the South African context. As a result, these findings will make a significant contribution to the way financial investment companies profile their clients.
format	article
author	Suné Ferreira Zandri Dickason-Koekemoer
author_facet	Suné Ferreira Zandri Dickason-Koekemoer
author_sort	Suné Ferreira
title	A structural equation model of financial risk tolerance in South Africa
title_short	A structural equation model of financial risk tolerance in South Africa
title_full	A structural equation model of financial risk tolerance in South Africa
title_fullStr	A structural equation model of financial risk tolerance in South Africa
title_full_unstemmed	A structural equation model of financial risk tolerance in South Africa
title_sort	structural equation model of financial risk tolerance in south africa
publisher	Taylor & Francis Group
publishDate	2020
url	https://doaj.org/article/eebe9e9401ef43a0bfeb4727a76b6461
work_keys_str_mv	AT suneferreira astructuralequationmodeloffinancialrisktoleranceinsouthafrica AT zandridickasonkoekemoer astructuralequationmodeloffinancialrisktoleranceinsouthafrica AT suneferreira structuralequationmodeloffinancialrisktoleranceinsouthafrica AT zandridickasonkoekemoer structuralequationmodeloffinancialrisktoleranceinsouthafrica
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A structural equation model of financial risk tolerance in South Africa

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