Title: DETERMINANTS OF RISK TAKING BEHAVIOR

Authors: GESTI MEMARISTA

Item Type : Thesis (Thesis)

Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

Investors can invest in various types of assets. The choice of asset type by investors will indicate risk-taking behavior. Predicting risk-taking behavior is crucial for investors and investment advisors, as investor behavior may not always be rational in making investment decisions. By understanding risk-taking behavior, each individual will be able to gain a competitive advantage based on cognitive psychology, which plays a role in selecting investment assets. This study aims to analyze the determinants of risk-taking behavior in the financial domain (stocks). The dependent variable is risk-taking behavior. The independent variables are subjective financial risk attitude, risk perception, miscalibration, and overoptimism. The control variables are age, gender, familiarity with investments, and financial knowledge. The study was conducted using a survey research design by distributing questionnaires in hardcopy and softcopy via Google Docs. The respondents were 130 stock investors from Surabaya. The stock sample used in this study was BMRI (PT Bank Mandiri Tbk). This research method used multiple linear regression. The results of this study indicate that subjective financial risk attitude, overoptimism, familiarity with investments, and financial knowledge have a significant positive effect on risk-taking behavior. Furthermore, risk perception and age have a significant negative effect on risk-taking behavior, while miscalibration and gender do not have a significant effect on risk-taking behavior.

Keywords: risk taking behavior, subjective financial risk attitude, risk perception, miscalibration, overoptimism, sociodemographic factors

Sources: http://repository.unair.ac.id/39040/