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The main objective of this paper was to establish which behavioural finance biases are associated with a certain level of risk tolerance and investor personality. Furthermore, the study aimed to indicate how these behavioural finance biases can influence investment decisions. Since behavioural...
Persistent link: https://www.econbiz.de/10012657457
The central function of a bank inherently exposes it to various financial risks where each of these risks has the possibility to influence stakeholders' perception. This perception, which is linked to the trustworthiness, credibility and performance of the bank, translates into the reputation of...
Persistent link: https://www.econbiz.de/10012657543
Financial institutions have the responsibility to measure an investor's risk tolerance to determine his or her risk profile. Once an investor's risk profile is determined, financial institutions are able to more accurately identify which financial products are suitable for the investor. Several...
Persistent link: https://www.econbiz.de/10012657586
Research relating to the influence of investor's demographic factors and personality traits on financial risk tolerance receives increasing attention. Financial risk tolerance refers to the degree of uncertainty an investor is willing to bear, with regards to the financial risks taken on. The...
Persistent link: https://www.econbiz.de/10014001538
Operational risk constitutes a large portion of a bank's risk exposure. Unlike other financial risks, operational risk is classified as a pure risk (only an opportunity of a loss), as it always leads to a financial loss for a bank. The failure to mitigate and manage operational risk effectively...
Persistent link: https://www.econbiz.de/10014001539
The paper investigates the factors that affect the risk tolerance of the general investors in Nepalese stock market. Using data of 99 investors, study applies ordinal logistic regression to evaluate the impact of investor's education level, gender, financial literacy, years in trading, prior...
Persistent link: https://www.econbiz.de/10014001577
exchange. Two sentiment indicators are considered, the overconfidence and the net optimism-pessimism indicator. Non … react rapidly and asymmetrically to changes in overconfidence sentiment, while the optimism and pessimism sentiment has …
Persistent link: https://www.econbiz.de/10011988718
expectation theorem and efficient market hypothesis. Therefore, this study is aimed at exploring the existence of overconfidence …
Persistent link: https://www.econbiz.de/10011988722
affecting risk-taking behavior among investors. Overconfidence (better than average, miscalibration, and excessive optimism) is …
Persistent link: https://www.econbiz.de/10014001498