A study of risk taking behavior in Malaysian stock market
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Date
2007
Authors
Sahul Hamid, Fazelina
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
This research studied the risk taking behavior of individual investors in the Malaysian
stock market. A theoretical framework was developed to test the risk taking behavior of
individual investors. There were five independent variables in the proposed model - risk
preference, inertia, less risk outcome history, problem framing and problem domain
familiarity. Risk propensity and risk perception were the two mediating variables in this
model. Hypotheses were tested with 162 investors from eight stockbroking companies.
It was found out that risk preference and inertia had significant effect on risk propensity
whereas problem domain familiarity had significant effect on risk perception. This study
failed to confirm the mediating role of risk propensity and risk perception. Overall,
inertia, less risk outcome history and risk propensity have been found to have significant
effect on investors risk taking behavior
Description
Keywords
Stock market