Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245295 
Year of Publication: 
2020
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 8 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] Abingdon [Year:] 2020 [Pages:] 1-15
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
Financial institutions have the responsibility to measure an investor's risk tolerance to determine his or her risk profile. Once an investor's risk profile is determined, financial institutions are able to more accurately identify which financial products are suitable for the investor. Several factors can affect one's level of risk tolerance such as investor well-being. The aim of this study is to construct a structural equation model which depicts the influence of South African investor well-being risk tolerance. Secondary data analysis was used to conduct a quantitative research study. Structural equation modelling techniques were applied during the analysis of the data. The main findings suggest the following: (i) risk tolerance has a positive and statistically significant relationship with investor well-being; (ii) financial well-being has a positive and statistically significant relationship with satisfaction with life; and (iii) financial well-being, physical activity, gender, and income respectively have positive and statistically significant relationships with risk tolerance. Satisfaction with life was not found to have a statistically significant impact on risk tolerance.
Subjects: 
risk tolerance
investor well-being
structural equation model
South Africa
JEL: 
E02
G17
I31
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.