Decoding the Financial Risk Puzzle: The Interplay of Biopsychosocial Indicators and Financial Literacy among Indian Investors

Series Economics and Business Issues Volume 12, 2024 Decoding the Financial Risk Puzzle: The Interplay of Biopsychosocial Indicators and Financial Literacy among Indian Investors

Volume 12, 2024

Shakira MUKHTAR, Anisa JAN, Adil ZAHOOR, Danish MEHRAJ, Viqar U. NISSA

Acta Univ. Sapientiae, Economics and Business, 12 (2024) 1–26

DOI: 10.47745/auseb-2024-0001

Abstract. This study examined the influence of biopsychosocial indicators (personality type A\B, self-esteem, and sensation seeking) on the financial risk tolerance of individual investors, and the mediating effect of financial literacy. The present study used structured questionnaire to collect the data from 586 Indian retail investors and adopted the convenience sampling technique followed by snowball sampling. The results revealed that personality type, self-esteem, and sensation seeking play a significant and vital role in influencing financial risk tolerance. Financial literacy partially mediates the relationship between personality type, self-esteem, and risk tolerance. However, our analysis did not find any significant mediating effect of financial literacy in the relationship between sensation seeking and financial risk tolerance. These findings highlight the significance of psychology of an investor and thus provide a unique contribution to the financial risk tolerance literature.

Keywords: biopsychosocial indicators, sensation seeking, self-esteem, personality type A\B, financial risk tolerance

JEL Classification: G11, G41, O3

Full text in PDF

Volume 12, 2024

Decoding the Financial Risk Puzzle: The Interplay of Biopsychosocial Indicators and Financial Literacy among Indian Investors, Shakira MUKHTAR, Anisa JAN, Adil ZAHOOR, Danish MEHRAJ, Viqar U. NISSA The Asymmetric Effect of Selected Agricultural Commodities and Oil Prices on Economic Growth in Nigeria, Umaru AMINU, Matthew Oladapo GIDIGBI, Bishara Saidu DOGO Exploring the Dynamic Interplay among Foreign Aid, Energy Usage, Economic Growth, and Carbon Emissions in Nigeria, Esther Olayinka ATOYEBI, Jimoh Sina OGEDE, Soliu Bidemi ADEGBOYEGA, Ibrahim Abidemi ODUSANYA Multilateral Development Banks in Emerging Countries – The Beginning of the Transformation of the Multilateral Financial System, Zoltán EPERJESI Interaction Effects of Agricultural Output Price and Agricultural Productivity on Industrialization in Sub-Saharan Africa, Anu Keshiro TORIOLA, Oluwaseyi Adedayo ADELOWOKAN Poverty, Education, Income Inequality Nexus in South Africa: A Multivariate Approach, Mercy T. MUSAKWA, Nicholas M. ODHIAMBO COVID-19 or the Conflict: Examining the Catastrophic Effect on the Stock Markets of G-20 Economies, Mahesh DAHAL, Joy DAS, Paulami RAY Private Investment and Economic Growth in South Africa: A Multivariate Causality Approach, Glenda MALULEKE Safety Citizenship Behaviour in Malaysia Public Transportation: The Role of Safety- Specific Transformational Leadership and Safety Consciousness, Chandrakantan SUBRAMANIAM, Johanim JOHARI, Munir Shehu MASHI, Choo Ling SUAN, Siti Hawa HARITH, Ruzilawati ISNIN Asymmetry in Okun’s Law Revisited: New Evidence on the Cyclical Unemployment– Cyclical Output Nexus in the Free State Province (South Africa) Using a Nonlinear ARDL Model, Oyeyinka Sunday OMOSHORO-JONES Audit Committee Characteristics and Firm Performance: Evidence from India, Abhisheck Kumar SINGHANIA Assessing the Efficiency of Academic Departments: An Application of Data Envelopment Analysis and Tobit Analysis, Rekha HANDA, Mandeep KAUR Front pages in PDF, Inside covers in PDF,

Decoding the Financial Risk Puzzle: The Interplay of Biopsychosocial Indicators and Financial Literacy among Indian Investors - Acta Universitatis Sapientiae