Relationship between Risk Perception and Employee Investment Behavior

Shafi, Haroon; Hussain, Mubashir; Sajjad, Syed Imran; Rehman, Kashif Ur

doi:10.22610/jebs.v3i6.289

Cited by 13 publications

(3 citation statements)

References 32 publications

(24 reference statements)

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“…Time horizon is defined as the time span over which an individual investor expects to hold the financial product that they have purchased (Shafi et al ., 2011, p. 347).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Saving for a Rainy Day… or a Trip to the Bahamas? How the Framing of Investment Communication Impacts Retail Investors

Hillenbrand

Saraeva

Money

et al. 2021

British J of Management

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Little is known to date regarding how the framing of investment communication impacts retail investor propensity to engage with financial products. To explore this lacuna, we apply insights from regulatory focus theory and construal level theory, and we vary investment communications in terms of the motivation (protect vs. achieve) and the time horizon (distant vs. near) presented in a 2 × 2 quasi-experimental design. We also include an analysis of investor characteristics and find that communication of 'short-term achieve' investments attracts particularly risk-tolerant and sensation-seeking individuals, posing questions of responsibility towards potentially vulnerable groups. We also find that negative attitudes towards finance may be troublesome, as they can stop individuals from engaging with 'long-term' investment products. Positive attitudes towards finance, in contrast, lead investors to engage with 'protect' products of both 'short-' and 'long-term' horizon, highlighting benefits for individuals and society from interventions aimed at financial education and exposure. The study concludes by discussing insights for the literature and practitioners from the application of new theory and new data to the management of investment communications.

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“…Time horizon is defined as the time span over which an individual investor expects to hold the financial product that they have purchased (Shafi et al ., 2011, p. 347).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Saving for a Rainy Day… or a Trip to the Bahamas? How the Framing of Investment Communication Impacts Retail Investors

Hillenbrand

Saraeva

Money

et al. 2021

British J of Management

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“…The people who have experienced a hazardous situation may have less concern about risk [66]. There is a strong relationship between past experiences, risk perception, and decision-making [67]. However, differences between individual and group experiences could depend on the time-framework or the proximity to the hazard areas or with the peer-effect [65].…”

Section: Sociodemographic and Agri-hydrological Factorsmentioning

confidence: 99%

Farmers’ Perception of Water Quality and Risks in the Mashavera River Basin, Georgia: Analyzing the Vulnerability of the Social-Ecological System through Community Perceptions

et al. 2018

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Competing natural resources usage that leads to dramatic land use changes can threaten the balance of a social-ecological system. When this is the case, communities are directly exposed to the negative consequences of those land use changes. The Mashavera River Basin is considered one of the hotspots of environmental pollution in Georgia. This is of importance for public health because the food production from this basin meets a substantial proportion of the country’s food demand. The farmers’ perception of the water quality and their perceived risks to the economy, health, and lifestyle reflect the status of the environmental and social conditions. The inclusion of farmers’ risk perceptions is an important stage of water quality governance that could enable active civic participation. The approach of this research study was the convergence model in the triangular design of the mixed method approach. As part of the social data, the research study was conducted with a survey of 177 households, for which agriculture was either a main or partial source of income. A few focus group discussions were also conducted. A binary logistic regression analysis was employed as the main method for the analysis. The results from the pollution load index (PLI) were used as the supportive data to verify some geospatial hypotheses. We found that aesthetic attributes (i.e., color changes observed in the river) and the source of the water contamination (i.e., mining sites) were the main predictor variables for a perceived risk to water quality, health, and livelihoods. The people who work in agriculture as the main income source had more concern about their ability to sell their agricultural products as a result of water contamination in the river, compared with people for whom agriculture is a secondary source of income or for self-consumption. Age, amount of land, years of agricultural experience, and the source of water supply for agriculture did not have a significant effect on any of the risk perception or water quality perception models. The results indicate that the health risk is perceived more strongly in areas with more heavily contaminated water compared to less polluted areas. We propose that conducting a public risk perception assessment is an ideal means to detect people’s concerns regarding water quality governance for future risk analysis in Georgia. Another recommendation of this study is an integrated model of risk assessment that combines the results from a public risk perception assessment and a technical assessment. The benefits of such an integrated assessment include finding new hazard-sensitive areas for further analysis, the possibility to cross-check data for verification, communal communication of hazardous conditions by utilizing local knowledge, and the direct participation of the community in monitoring risks.

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“…These studies throw more light on why professional and nonprofessional investors make investment decisions in the real world. However, a couple of studies attempted to explore the risk perception attitude of the investors but they left the exploration of link between risk perception and investment behavior of an employee of the company for future research (Shafi, Akram, Hussain, Sajjad & Rehman, 2011). Some studies found negative relationship between risk perception and investment decision.…”

Section: Introductionmentioning

confidence: 99%

Moderating Effect of Risk Perception on Financial Knowledge, Literacy and Investment Decision

Ademola¹,

Musa²,

Innocent³

2019

aijefr

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Financially unsophisticated investors who consistently make sub-optimal financial decisions may suffer lasting consequences for long-term wealth accumulation and welfare. This study examines moderating effect of risk perception on financial knowledge, literacy and investment decision. Data was collected from 378 investors through the aids of structured questionnaires. The research hypotheses were tested using partial Least-square (PLS) regression. The findings reveals that there is positive and significant effect between financial knowledge, risk perception and investment decisions, while positive but insignificant effect was found between financial literacy and investment decisions. However, risk perception moderates the effect of financial literacy, investment knowledge on investment decisions. It recommends that investors, policymakers and individuals investors should embark on various educational programmes, to further influence the level of their investment decisions before committing their hard earning fund into project.

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Relationship between Risk Perception and Employee Investment Behavior

Cited by 13 publications

References 32 publications

Saving for a Rainy Day… or a Trip to the Bahamas? How the Framing of Investment Communication Impacts Retail Investors

Saving for a Rainy Day… or a Trip to the Bahamas? How the Framing of Investment Communication Impacts Retail Investors

Farmers’ Perception of Water Quality and Risks in the Mashavera River Basin, Georgia: Analyzing the Vulnerability of the Social-Ecological System through Community Perceptions

Moderating Effect of Risk Perception on Financial Knowledge, Literacy and Investment Decision

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