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Relationship between risk perception and employee investment behavior

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  • Shafi, Haroon
  • Akram, Muhammad
  • Hussain, Mubashir
  • Sajjad, Syed Imran
  • Rehman, Kashif Ur

Abstract

nvestment behavior of an investor depends on his/her risk perception and risk attitude. This paper attempts to explore that how the perception of an investor who is also the employee of that organization differs from other investors. Does he/she perceives risk similarly as other common investors or his relationship with the organization as an employee has any impact his/her risk perception, attitude and investment behavior. This research study is conceptual in nature and mainly based on previous literature findings and evidences. Findings of this study suggested that employees risk perception is directly related with investment behavior and there is strong relationship between them. This can help the management to make special offers of shares to employees, this will further strength the bond of employees with the organization.

Suggested Citation

  • Shafi, Haroon & Akram, Muhammad & Hussain, Mubashir & Sajjad, Syed Imran & Rehman, Kashif Ur, 2011. "Relationship between risk perception and employee investment behavior," MPRA Paper 53849, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:53849
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    File URL: https://mpra.ub.uni-muenchen.de/53849/1/MPRA_paper_53849.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Employees Risk Perception; Employees investment Behavior;

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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