The Effect of Demographics and Personality on Investment Choice among UK Investors

Masters
Essay
Miscellaneous
Pages 11 (2761 words)
Download 0
Many studies have been undertaken across the world by scholars as well as academicians in the field of behavioral finance to explore what all psychological and demographic factors affect personal investment decisions and choice among alternatives…

Introduction

Hershey and Schoemaker in 1980 observes that women investors are more risk averse than men as regards gamble is concerned (Hershey 1980). Another popular study on the gender practices of investing; the researchers remark that both men and women are equally successful in investment decisions and there found no significance difference in investment decisions between male and female groups (Hudgen 1985). In an empirical study among men and women investors in auctions and lotteries undertaken by W. V Harlow and Keith Brown document that men prefer to take more risk than women as regards lottery and auction investments are concerned (Harlow 1990). In another significant study on investment behaviour among individual investors considering their income level William Riley and K Victor Chow attempt to remark that "relative risk aversion decreases as one rises above the poverty level and decreases significantly for the very wealthy. It also decreases with age-but only up to a point. After age 65 (retirement), risk aversion increases with age" (Riley 1992). However, the authors speculate that "education, income and wealth are all highly correlated, so the relationship may be a function of wealth rather than education" (Riley 1992). ...
Download paper
Not exactly what you need?

Related papers

Personality Commonalities Among Adolescent Suicide
In a research article written by Fleischmann, Bertolote, Belfer & Beautrais, 2005 they reexamined past research that showed the presence and distribution of mental disorders in cases of completed suicide among young people worldwide.…
UK Investment in China
However it is observed that the new emerging markets have socio-cultural contexts much different from the parallel contexts in western countries. Such cultural differences present themselves both as an opportunity and threat to those organizations expecting to find niche in these markets. If properly researched and read into the cultural dimensions of the foreign market can be woven into the…
Birth Order and Its Effect on Personality
Birth order can be defined as the position one has in a family in relation to the other siblings. For instance a person can be a first born, second or even a last born. There are some people who are normally only children to their parents. All these are termed as birth orders. According to research, birth order has various effects on an individual's personality. (Adler, 1956)It is very important…
The Effect of Demographics and Personality on Investment Choice among UK Investors
Hershey and Schoemaker in 1980 observes that women investors are more risk averse than men as regards gamble is concerned (Hershey 1980). Another popular study on the gender practices of investing; the researchers remark that both men and women are equally successful in investment decisions and there found no significance difference in investment decisions between male and female groups (Hudgen…
Should investors in equity markets be worried about the timing of their investment
The modern thinking in Financial Management today is that financial managers do not perform the role of goal keepers of financial data and information, and arranging funds, whenever directed to do so. Rather, financial managers occupy a key role in top management areas by solving complex management problems. Today, the financial managers are responsible for shaping the fortunes of the enterprise…
On Socially Responsible Investment and Institutional Investors Crusading Knights or Thorns in the Side
Thus, society and business co-exist in the same place, benefiting from each other through wealth transfer or the satisfaction of a need, and as long as business meets this need and serves its purposes for both society and the owner of the business, then it continues to be an ongoing and sustainable concern as the income generated allows the business to stay in existence. However, once any of these…
UK-An Investors Haven
Similarly, countries that export such goods can then look at importing goods that they feel are more attractive and efficient from third countries. Such 'gains from trade' will help all countries benefit and lead to all-round development and prosperity. Global production and consumption will increase (Bruce E. Moon, Ideas and Policies, 1999)2. This law of comparative advantage was expressed by…