Financial Risk Attitude and Behavior: Do Planners Help Increase Consistency?

Park, Eric; Yao, Rui

doi:10.1007/s10834-015-9469-9

Cited by 16 publications

(12 citation statements)

References 54 publications

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“…In H3 it has been explained that access to finance does not mediate this relationship because most of the respondents are SME owners who have small turnover, who tend to use internal funding sources such as turnover from company profits, loans from relatives, friends, and savings, so that the SME owners tend to have a high level of financial tolerance as indicated by the majority of respondents who chose the answer to agree on the items from the financial risk tolerance indicator. The results of this study are also in line with previous research conducted by Park & Yao (2016); Worthy et al (2010); Father (2020); Ahmed (2020). This condition occurs when the higher level of knowledge possessed by business actors will affect the financial behavior of business actors, but with the moderation of financial risk attitude, this relationship can weaken.…”

Section: Indirect Effectsupporting

confidence: 92%

“…This condition can be seen in young people who tend to like a high risk when compared to older people. The results of previous studies show that there is an influence of financial risk attitude on financial behavior (Park & Yao, 2016;Worthy et al, 2010), financial risk tolerance moderates the relationship between financial knowledge, financial attitude, and financial behavior (Bapat, 2020), and financial risk attitude moderates cognitive behavior (Ahmad, 2020). Therefore, this study argues that a financial risk attitude can moderate the relationship between financial knowledge and financial behavior.…”

Section: The Moderation Role Of Financial Risk Attitudementioning

confidence: 53%

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The effect of financial knowledge on firm performance

Wati

Sumiati

Andarwati

2022

IJRBS

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This research aims to know the effect of financial knowledge on firm performance; the role of financial behavior and access to finance as mediation and the role of financial risk attitude as moderation. The object of this research is the owner of small-medium enterprises, sector food and beverage in Malang. Data collection was carried out using a questionnaire of 150 respondents. Data analysis of this research uses partial least square (PLS). The finding indicates that financial knowledge has a positive and significant effect on firm performance; financial behavior mediates the relationship of financial knowledge dan firm performance; while access to finance doesn’t mediate the relationship of financial knowledge with firm performance. This research also found that financial risk attitude weakens the relationship of financial knowledge with financial behavior.

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Section: Indirect Effectsupporting

confidence: 92%

Section: The Moderation Role Of Financial Risk Attitudementioning

confidence: 53%

The effect of financial knowledge on firm performance

Wati

Sumiati

Andarwati

2022

IJRBS

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“…In a professional context, sharing is essentially borrowing competence from the professional advisor. Previous research has indicated that the use of a financial planner can improve consistency in household decision making with regards to risk tolerance (Park & Yao, ). The decision to share investment decision making with a financial planner may operate as a form of insurance or self‐protection (Ehrlich & Becker, ).…”

Section: Discussionmentioning

confidence: 99%

The impact of shared financial decision making on overconfidence for married adults

2019

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Previous research has shown that overconfidence is associated with a decrease in the quality of decision making and, therefore, decision outcomes. However, less is known about the conditions or circumstances that reduce financial overconfidence. Using data from two national studies, this study was designed to provide insights into the dynamics of intrahousehold financial decision making by examining the role of shared decision making in reducing overconfidence bias. Findings suggest that a psychological sense of shared ownership of money is associated with lower levels of overconfidence. With regard to financial planning practice, these results suggest that married individuals who believe in shared ownership of household money tend to have lower levels of overconfidence.

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“…There is solid evidence that cognitive ability is linked to individual’s attitude towards risk (Banks, 2010; Bonsang & Dohmen, 2015;), and individuals with stronger cognitive abilities tend to choose riskier investments (Jin et al, 2019; Kesavayuth et al, 2018; Park & Yao, 2015). Accurately measuring financial risk attitude is a critical factor for positive customer satisfaction and it has become increasingly important for financial planners (Metzger & Fehr, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

An Investigation of the Impact of Financial Literacy and Financial Socialization on Financial Satisfaction: Mediating Role of Financial Risk Attitude

Madinga

Maziriri

Chuchu

et al. 2022

Global Journal of Emerging Market Economies

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Over the years, academics have paid a lot of attention to the topic of financial literacy. As a result, the current study investigates this topic using a unique conceptual model that was created expressly to investigate the study’s claimed linkages. Three hundred eighty four people took part in the study using a web-based self-administered questionnaire. The data was analysed using Partial Least Square Structural Equation Modelling (PLS-SEM). The outcomes of this study demonstrate that those who are more willing to take chances are more likely to be content with their financial situation. Improving financial literacy and socializing has a direct impact on financial happiness. Furthermore, financial risk attitude positively facilitates the association of a customer’s monetary education and gratification associated with education. In addition, financial risk attitude positively intercedes the association of financial socialization and monetary gratification. Financial satisfaction is observed to be of paramount importance for customers, company as well as the government. The findings of this article promote the successful delivery of financial services to established target groups, followed by recommendations for the provision of financial literacy for individuals. Furthermore, the outcomes of this research have led the way for the discovery of insights potentially useful for public policy development.

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Financial Risk Attitude and Behavior: Do Planners Help Increase Consistency?

Cited by 16 publications

References 54 publications

The effect of financial knowledge on firm performance

The effect of financial knowledge on firm performance

The impact of shared financial decision making on overconfidence for married adults

An Investigation of the Impact of Financial Literacy and Financial Socialization on Financial Satisfaction: Mediating Role of Financial Risk Attitude

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