Establishing a link between risk tolerance, investor personality and behavioural finance in South Africa

Artikel

The main objective of this paper was to establish which behavioural finance biases are associated with a certain level of risk tolerance and investor personality. Furthermore, the study aimed to indicate how these behavioural finance biases can influence investment decisions. Since behavioural finance is becoming more essential in the investment industry, further research within a South African context was regarded as necessary. Results indicated that investors with a low-risk tolerance level and a conservative investor personality are subject towards loss aversion and mental accounting biases. Investors with a high-risk tolerance level are mostly subject towards the self-control bias. The significance of this study will enable investment companies to more accurately profile their investors and to offer more refined investment options.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 6 ; Year: 2018 ; Issue: 1 ; Pages: 1-13 ; Abingdon: Taylor & Francis

Classification and Topics

• Classification: Wirtschaft ; Criteria for Decision-Making under Risk and Uncertainty ; Portfolio Choice; Investment Decisions
• Subject: behavioural finance ; investors ; investor personalities ; risk tolerance ; investment decisions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dickason, Zandri ; Ferreira, Sune
• Event: Veröffentlichung
• (who): Taylor & Francis
• (where): Abingdon
• (when): 2018

Further information

• DOI: doi:10.1080/23322039.2018.1519898
• Handle: http://hdl.handle.net/10419/245166
• Last update: 10.03.2025, 11:43 AM CET