Cultural Influences on Risk Tolerance: Evidence for Students in Indonesia
This paper examined the impact of culture on risk tolerance for students in Indonesia. By using surveys that had been completed by 309 college students, this research used logistic regression as the main method. This research found that there is no evidence that Western Indonesia would score as more...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2020-09-01
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| Series: | International Review of Management and Marketing |
| Online Access: | https://econjournals.com/index.php/irmm/article/view/10224 |
| _version_ | 1797908232103002112 |
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| author | Sudarso Kaderi Wiryono Mandra Lazuardi Kitri Santi Novani Prawira Fajarindra Belgiawan Marla Setiawati |
| author_facet | Sudarso Kaderi Wiryono Mandra Lazuardi Kitri Santi Novani Prawira Fajarindra Belgiawan Marla Setiawati |
| author_sort | Sudarso Kaderi Wiryono |
| collection | DOAJ |
| description | This paper examined the impact of culture on risk tolerance for students in Indonesia. By using surveys that had been completed by 309 college students, this research used logistic regression as the main method. This research found that there is no evidence that Western Indonesia would score as more risk-tolerant on standard risk assessment questionnaire and would choose portfolio allocations that are riskier than Central & Eastern Indonesia. Parents' higher education has given a significant result to the risk tolerance match. The theoretical and practical implications of this research are discussed. Our findings suggest that differences in risk tolerance are at least partially a product of a culture which is a tribe in each region, but such differences may not always be reflected in actual investment decisions.
Keywords: Risk tolerance, cultural influences, tribe
JEL Classifications: I0, Z0
DOI: https://doi.org/10.32479/irmm.10224
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| first_indexed | 2024-04-10T10:49:29Z |
| format | Article |
| id | doaj.art-052927f946774ad3be60528c95bf01c4 |
| institution | Directory Open Access Journal |
| issn | 2146-4405 |
| language | English |
| last_indexed | 2024-04-10T10:49:29Z |
| publishDate | 2020-09-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Review of Management and Marketing |
| spelling | doaj.art-052927f946774ad3be60528c95bf01c42023-02-15T16:20:12ZengEconJournalsInternational Review of Management and Marketing2146-44052020-09-011054750Cultural Influences on Risk Tolerance: Evidence for Students in IndonesiaSudarso Kaderi Wiryono0Mandra Lazuardi Kitri1Santi Novani2Prawira Fajarindra Belgiawan3Marla Setiawati4Institut Teknologi BandungInstitut Teknologi BandungInstitut Teknologi BandungInstitut Teknologi BandungInstitut Teknologi BandungThis paper examined the impact of culture on risk tolerance for students in Indonesia. By using surveys that had been completed by 309 college students, this research used logistic regression as the main method. This research found that there is no evidence that Western Indonesia would score as more risk-tolerant on standard risk assessment questionnaire and would choose portfolio allocations that are riskier than Central & Eastern Indonesia. Parents' higher education has given a significant result to the risk tolerance match. The theoretical and practical implications of this research are discussed. Our findings suggest that differences in risk tolerance are at least partially a product of a culture which is a tribe in each region, but such differences may not always be reflected in actual investment decisions. Keywords: Risk tolerance, cultural influences, tribe JEL Classifications: I0, Z0 DOI: https://doi.org/10.32479/irmm.10224 https://econjournals.com/index.php/irmm/article/view/10224 |
| spellingShingle | Sudarso Kaderi Wiryono Mandra Lazuardi Kitri Santi Novani Prawira Fajarindra Belgiawan Marla Setiawati Cultural Influences on Risk Tolerance: Evidence for Students in Indonesia International Review of Management and Marketing |
| title | Cultural Influences on Risk Tolerance: Evidence for Students in Indonesia |
| title_full | Cultural Influences on Risk Tolerance: Evidence for Students in Indonesia |
| title_fullStr | Cultural Influences on Risk Tolerance: Evidence for Students in Indonesia |
| title_full_unstemmed | Cultural Influences on Risk Tolerance: Evidence for Students in Indonesia |
| title_short | Cultural Influences on Risk Tolerance: Evidence for Students in Indonesia |
| title_sort | cultural influences on risk tolerance evidence for students in indonesia |
| url | https://econjournals.com/index.php/irmm/article/view/10224 |
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