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An Analysis on The Socio-Economic and Demographic Factors That Have an Effect on The Risk Taking Preferences of Personal Investors

Author

Listed:
  • Fatih B. GUMUS

    (Sakarya University, Business Faculty, Sakarya, Turkey)

  • Yusuf DAYIOGLU

    (Sakarya University, Social Sciences Institutes, Sakarya, Turkey)

Abstract

Individual investors make portfolio investments along with various alternatives for the purpose of increasing their profit. Most of the time, these investments carry different risk levels and investors make portfolio investments by evaluating these risks of different levels. During risky investment decisions such as portfolio selection and diversification, individual investors make their decisions under the influence of various factors. Among these; there are demographic, social and economic factors like income level, age, gender, educational background, marital status and quantity and quality level of one's profession. This study is conducted for the purpose of examining the demographic, social and economic factors mentioned above that may have an effect on predispositions of individual investors operating in Borsa Istanbul (BIST) towards risk taking. In the analyses done within this scope, it has been demonstrated that the factors discussed above except marital status all have significant effect on the risk perception of individual investors during their portfolio investments.

Suggested Citation

  • Fatih B. GUMUS & Yusuf DAYIOGLU, 2015. "An Analysis on The Socio-Economic and Demographic Factors That Have an Effect on The Risk Taking Preferences of Personal Investors," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 136-147.
  • Handle: RePEc:eco:journ1:2015-01-11
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    References listed on IDEAS

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    More about this item

    Keywords

    Risk perception; Individual investors; Socio-Economic and Demographic Factors;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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