Assessment of financial risk tolerance of investors in the capital market

Darban Fooladi, Javad; Tabasi Lotfabadi, Vahideh

doi:10.22034/necsbm.2024.462684.1060

Assessment of financial risk tolerance of investors in the capital market

Document Type : Original Article

Authors

Javad Darban Fooladi ¹

Vahideh Tabasi Lotfabadi ²

¹ Ph.D in accounting, Shahrood branch, Islamic Azad University, Shahrood, Iran

² Assistant professor, Department of Management, Tabaran Institute of Higher Education, Mashhad, Iran.

10.22034/necsbm.2024.462684.1060

Abstract

Risk assessment is always considered one of the financial decision-making processes in any market, which is usually associated with significant challenges for investors due to the impossibility of predicting all effective factors in the market. Risk tolerance is considered as a mental and functional basis in investment, which, due to its integration with individual characteristics in similar conditions, may result in noticeable differences in returns for investors. The aim of this research is to evaluate the financial risk tolerance of investors in the capital market. The present research is qualitative and methodologically developmental, therefore text analysis processes were utilized to first identify research related to financial risk tolerance assessment and then determine its components and themes. Furthermore, a Delphi analysis was used to determine the theoretical consensus boundary so that a theoretical framework for the research could be presented thereafter. The results of the study indicated the existence of two main components of cognitive and behavioral drivers of financial risk tolerance of investors, identifying a total of 12 themes as the main components of the research through two stages of Delphi analysis.

Keywords

Risk tolerance

Mental stimuli

Behavioral stimuli

Cognitive attitude of the market

capital market

Subjects

Accounting

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