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Financial decision-making power and risk taking

Author

Listed:
  • Phung, Trang M.T.
  • Tran, Quoc N.
  • Nguyen, Nhut H.
  • Nguyen, Tho H.

Abstract

We find that financial decision-making power per se is significant in explaining individuals’ objective risk-taking behavior and subjective risk attitude. More importantly, we show that this decision power attenuates the correlation between subjective risk attitude and objective risk taking. These results are significant in understanding the important role of decision-making power in individual risk-taking behavior.

Suggested Citation

  • Phung, Trang M.T. & Tran, Quoc N. & Nguyen, Nhut H. & Nguyen, Tho H., 2021. "Financial decision-making power and risk taking," Economics Letters, Elsevier, vol. 206(C).
    • Handle: RePEc:eee:ecolet:v:206:y:2021:i:c:s0165176521002767
    DOI: 10.1016/j.econlet.2021.109999
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    References listed on IDEAS

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    Cited by:

    1. Trang M. T. Phung & Quoc N. Tran & Phuong Nguyen‐Hoang & Nhut H. Nguyen & Tho H. Nguyen, 2023. "The role of learning motivation on financial knowledge among Vietnamese college students," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 529-563, January.
    2. repec:thr:techub:10032:y:2022:i:1:p:41-61 is not listed on IDEAS
    3. Jesus Alberto Peinado Guevara & Victor Manuel Peinado Guevara & Aldo Alan Cuadras Berrelleza & Jaime Herrera Barrientos & Hector Jose Peinado Guevara & Mayra Patricia Osuna & Miguel Angel Montoya Leyv, 2022. "Importance of financial planning for the administrator of microenterprise in Guasave, Sinaloa," Technium Social Sciences Journal, Technium Science, vol. 32(1), pages 41-61, June.

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    More about this item

    Keywords

    Household; Risk taking; Decision making; Investment behavior;
    All these keywords.

    JEL classification:

    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G50 - Financial Economics - - Household Finance - - - General
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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