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Investment risk – The perspective of individual investors

Author

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  • Sachse, Katharina
  • Jungermann, Helmut
  • Belting, Julia M.

Abstract

The aim of the research presented in this paper is to investigate the perceived investment risk of lay investors. Two surveys were conducted to examine the financial risk perception of German individual investors (N=119 in study 1; N=171 in study 2). Participants were asked to rate the risk and several aspects of different types of investment products (e.g. shares and bank savings books).

Suggested Citation

  • Sachse, Katharina & Jungermann, Helmut & Belting, Julia M., 2012. "Investment risk – The perspective of individual investors," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 437-447.
    • Handle: RePEc:eee:joepsy:v:33:y:2012:i:3:p:437-447
    DOI: 10.1016/j.joep.2011.12.006
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    References listed on IDEAS

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    Cited by:

    1. Lambert, Jérôme & Bessière, Véronique & N’Goala, Gilles, 2012. "Does expertise influence the impact of overconfidence on judgment, valuation and investment decision?," Journal of Economic Psychology, Elsevier, vol. 33(6), pages 1115-1128.
    2. Sara Jonsson & Inga-Lill Söderberg, 2018. "Investigating explanatory theories on laypeople’s risk perception of personal economic collapse in a bank crisis – the Cyprus case," Journal of Risk Research, Taylor & Francis Journals, vol. 21(6), pages 763-779, June.
    3. Felix Holzmeister & Jürgen Huber & Michael Kirchler & Florian Lindner & Utz Weitzel & Stefan Zeisberger, 2020. "What Drives Risk Perception? A Global Survey with Financial Professionals and Laypeople," Management Science, INFORMS, vol. 66(9), pages 3977-4002, September.
    4. Jingguo Wang & Nan Xiao & H. Raghav Rao, 2015. "Research Note—An Exploration of Risk Characteristics of Information Security Threats and Related Public Information Search Behavior," Information Systems Research, INFORMS, vol. 26(3), pages 619-633, September.
    5. Maier, Erik, 2016. "Supply and demand on crowdlending platforms: connecting small and medium-sized enterprise borrowers and consumer investors," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 143-153.
    6. K.S. Muehlfeld & G.U. Weitzel & A. van Witteloostuijn, 2012. "Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets," Working Papers 12-18, Utrecht School of Economics.
    7. Huber, Jürgen & Palan, Stefan & Zeisberger, Stefan, 2019. "Does investor risk perception drive asset prices in markets? Experimental evidence," Journal of Banking & Finance, Elsevier, vol. 108(C).
    8. Szanyi-Nagy, Sára & Vaskövi, Ágnes, 2021. "Hogyan élnek az európai nyugdíjasok? Egyéni szintű különbözőségek vizsgálata SHARE-adatok alapján [European quality of life in retirement. Analysing personal differences through SHARE data]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1336-1363.
    9. Muehlfeld, Katrin & Weitzel, Utz & van Witteloostuijn, Arjen, 2013. "Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 195-209.
    10. Fisher, Patti J. & Yao, Rui, 2017. "Gender differences in financial risk tolerance," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 191-202.
    11. Zaheer Ahmed & Umara Noreen & Suresh A.L. Ramakrishnan & Dewi Fariha Binti Abdullah, 2021. "What explains the investment decision-making behaviour? The role of financial literacy and financial risk tolerance," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 11(1), pages 1-19.
    12. Linh Nguyen & Gerry Gallery & Cameron Newton, 2019. "The joint influence of financial risk perception and risk tolerance on individual investment decision‐making," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(S1), pages 747-771, April.

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    More about this item

    Keywords

    Perceived risk; Investment decisions; Individual investors; Investment risk perception;
    All these keywords.

    JEL classification:

    • D - Microeconomics
    • D - Microeconomics

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