Factors Influencing Financial Risk Tolerance: A Review

Authors

  • Mubarokah Bunyamin Faculty of Industrial Management, Universiti Malaysia Pahang, Malaysia
  • Norwazli Abdul Wahab Faculty of Industrial Management, Universiti Malaysia Pahang, Malaysia

DOI:

https://doi.org/10.15282/ijim.12.1.2021.6753

Keywords:

Financial risk tolerance, Financial decision, Investment

Abstract

High financial risk tolerance level encourages investors’ participation  in financial market. Thus, elevate their capabilities to achieve their financial goals and support national economic growth and well-being. This paper aims to investigate the factors affecting financial risk tolerance from studies around the globe. A comprehensive review of financial risk tolerance is carried out with a particular attention on factors that impact financial risk tolerance on financial decisions. This study indicates that financial risk tolerance can be explained by demographic profiles, psychology, social, geographical differences, and financial capability factors. These  findings will be useful to professionals, technologists, and financial institutions to identify potential investors based on the indicators concluded with the suggestion on financial technology (FinTech) utilisation. Hence, encouraging participation in the Malaysian financial market during global health crisis and  reaching  economic  well-being  towards industrial revolution 4.0 (IR 4.0).

Author Biography

Norwazli Abdul Wahab, Faculty of Industrial Management, Universiti Malaysia Pahang, Malaysia

Norwazli Bt Abdul Wahab is currently a Senior Lecturer at Faculty of Industrial Management, Universiti Malaysia Pahang (UMP). She obtained her PhD from Universiti Teknologi MARA (UiTM). She completed her Master of Business Administration in Finance, Bachelor of Accountancy (Hons) and Diploma in Accountancy from Universiti Teknologi MARA (UiTM). She has experience working in the industry as an account and finance executive. Her areas of research include corporate governance, corporate social responsibility, corporate financial performance, financial planning and risk management.

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Published

2021-11-29

How to Cite

Bunyamin, M., & Abdul Wahab, N. (2021). Factors Influencing Financial Risk Tolerance: A Review. International Journal of Industrial Management, 12(1), 296–305. https://doi.org/10.15282/ijim.12.1.2021.6753

Issue

Vol. 12 (2021): International Journal of Industrial Management

Section

Vol 12 2021

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Copyright (c) 2021 Mubarokah Bunyamin, Norwazli Abdul Wahab

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