The Moderating Effect of Financial Knowledge on Financial Risk Tolerance

Abstract

The purpose of this paper is to describe a study that was designed to determine to what extent subjective and objective measures of financial knowledge moderate the relationship between an investor’s financial risk tolerance and demographic factors thought to be important descriptors of an investor’s willingness to take a financial risk. It was determined that those who identified as male, and those with more attained education and income, exhibited higher investment risk tolerance (IRT). Subjective financial knowledge (SFK) was positively associated with IRT. The relationship between gender and IRT was moderated by SFK, whereas the relationship between IRT and age was moderated by objective financial knowledge (OFK). A positive relationship between education and IRT was noted, but the relationship was moderated by OFK, whereas the association between IRT and household income was moderated by SFK. Findings from this study indicate that while SFK and OFK are positively correlated, they are not measuring the same underlying construct, and as such, each moderates IRT relationships differently.

The Role Of Financial Factor On The Financial Behaviour Of Small And Medium Enterprises (SMEs)

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Explaining Policyholders’ Chatbot Acceptance with an Unified Technology Acceptance and Use of Technology-Based Model

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توسيط الثقة المالية والاتجاه نحو المخاطر المالية والعائد المدرك في العلاقة بين المعرفة المالية ونية الاستثمار في سوق الأوراق المالية السعودي

“…‫ت‬ ‫ت‬ ‫ت‬ ‫ل‬ ‫تفت‬ ‫ت‬ ‫ت‬ ‫يح‬ ‫تادم‬ ‫ت‬ ‫ت‬ ‫صي‬ ‫ت‬ ‫ت‬ ‫ت‬ ‫ل‬ ‫ذ‬ ‫تا‬ ‫ت‬ ‫ت‬ ‫دع‬ ‫تة‬ ‫ت‬ ‫ت‬ ‫اطالي‬ ‫تة‬ ‫ت‬ ‫ت‬ ‫اطعش‬ ‫تج‬ ‫ت‬ ‫ت‬ ‫م‬ ‫تا‬ ‫ت‬ ‫ت‬ ‫كب‬ ‫تة‬ ‫ت‬ ‫ت‬ ‫ملذسج‬ ‫شيج‬ ‫تين‬ ‫ت‬ ‫ت‬ ‫اطع‬ ‫تع‬ ‫ت‬ ‫ت‬ ‫ت‬ ‫ا‬ ‫ث‬ ‫تذ‬ ‫ت‬ ‫ت‬ ‫ك‬ ‫تاملحة‬ ‫ت‬ ‫ت‬ ‫الع‬ ‫تاة‬ ‫ت‬ ‫ت‬ ‫اظ‬ ‫الذس‬ ‫تاسة‬ ‫ت‬ ‫ت‬ ‫ؼ‬ ‫تذ‬ ‫ت‬ ‫ت‬ ‫مل‬ ‫اطالية‬ ‫اظوام‬ ‫اطسظعاة‬ ‫الؽشماة‬ ( Hansen, 2012( Hansen, , 2017 ‫تو‬ ‫ملد‬ ‫ت‬ ‫تذ‬ ‫ل‬ ‫تال‬ ‫كيج‬ ‫تا‬ ‫ااج‬ ‫تويج‬ ‫ا‬ ‫ل‬ ‫كزل‬ ‫ذ‬ ‫يعا‬ ‫تة‬ ‫اطالي‬ ‫ش‬ ‫تا‬ ‫املً‬ ‫ل‬ ‫اد‬ (Grable & Rabbani, 2023;Nguyen, Gallery & Newton, 2016) ‫تاتت‬ ‫اوملع‬ ‫تج‬ ‫م‬ ‫تذ‬ ‫يضي‬ ‫تا‬ ‫ك‬ ‫تة‬ ‫اطالي‬ ‫ام‬ ‫س‬ ‫ا‬ ‫توم‬ ‫ظ‬ ‫ل‬ ‫اس‬ ‫وظين‬ ‫مذ‬ ‫كبا‬ ‫ذ‬ ‫ا‬ ‫لتدحيق‬ (Clark, Lusardi & Mitchell, 2017) ‫تاتت‬ ‫ملي‬ ‫تضص‬ ‫دع‬ ‫ت‬ ‫ي‬ ‫تج‬ ‫م‬ ‫اطالية‬ ‫ام‬ ‫س‬ ‫ا‬ ‫ظوم‬ ‫ل‬ ‫اس‬ ‫وظين‬ ‫ملدو‬ (Adil et al, 2023;Sivaramakrishnan, Srivastava & Rastogi, 2017) (Adil et al, 2023;Akhtar & Das, 2019;Kumari, Senani & Ajward, 2022;Sivaramakrishnan et al, 2017 (Ali, 2011;Alqatawni, 2016;Hansen, 2012;Hysmith, 2017;Kumari et al, 2022;Metzger & Fehr, 2018;Sivaramakrishnan et al, 2017…”