Determinants of the possibilities by investors’ risk-taking: Empirical evidence from Vietnam

Abstract

This paper focuses on determining the factors influencing investors' risktaking through empirical evidence from Vietnam. This study investigates risk perception, expected return and herding behavior, and other determinants such as historical volatility and subjective financial risk attitude; according to previous studies, these are the main components affecting risk-taking behavior among investors. Overconfidence (better than average, miscalibration, and excessive optimism) is also taken into consideration. We employ pooled-OLS and quantile regression to overcome the shortage of research models in this field. In addition, we demonstrate how risk-taking behavior can be affected by those factors with the application of measures across four different investment channels. This study suggests implications for investors who wish to control risk.

The effects of financial literacy, accounting information, risk perception and herding behavior on investment decision

“…In addition to risk perception, herding behavior also contributes to irrational investing decisions. Duy Bui et al (2021), claimed that a herding investor will imitate other investors who believe they can offer good information and be taken into account while making investing decisions. Based on the phenomena that occurred, researchers want to examine the effect of financial literacy, accounting information, risk perception, and herding behavior on investment decisions.…”