Determinants of financial risk tolerance: Evidence from the Indonesian millennials
The purpose of this study is to examine the level of Indonesian millennials’ financial risk tolerance and the effect of gender, family occupation background, geographical location and financial literacy on financial risk tolerance. This research applies a quantitative approach using primary data tha...
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| Format: | Article |
| Language: | English English |
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Conscientia Beam
2023
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| Subjects: | |
| Online Access: | https://eprints.ums.edu.my/id/eprint/36583/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/36583/2/FULL%20TEXT.pdf |
| _version_ | 1796911859428753408 |
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| author | Suherman Suherman Herni Kurniawati Rosle Mohidin |
| author_facet | Suherman Suherman Herni Kurniawati Rosle Mohidin |
| author_sort | Suherman Suherman |
| collection | UMS |
| description | The purpose of this study is to examine the level of Indonesian millennials’ financial risk tolerance and the effect of gender, family occupation background, geographical location and financial literacy on financial risk tolerance. This research applies a quantitative approach using primary data that were collected through questionnaires. The sample used for this survey comprises 410 university students from western (Java, Sumatra, Kalimantan) and eastern (Bali, Nusa Tenggara, Sulawesi, Maluku, Papua) parts of Indonesia. The online survey was distributed to various universities in Indonesia. The one-way ANOVA and multiple regression methods were used for the analysis. The results show that: 1) the level of Indonesian millennials’ risk tolerance is moderate, 2) the level of Indonesian millennials’ financial risk tolerance is different, 3) gender, geographical location and financial literacy significantly affect the financial risk tolerance, and 4) family occupation background does not significantly affect the financial risk tolerance. These findings offer managerial insights into business practices in the financial industry to develop individualized investment portfolios based on investors’ financial risk tolerance. In addition, financial advisors are recommended to offer relatively riskier financial products to millennials from West Indonesia and those with higher financial literacy. |
| first_indexed | 2024-03-06T03:25:01Z |
| format | Article |
| id | ums.eprints-36583 |
| institution | Universiti Malaysia Sabah |
| language | English English |
| last_indexed | 2024-03-06T03:25:01Z |
| publishDate | 2023 |
| publisher | Conscientia Beam |
| record_format | dspace |
| spelling | ums.eprints-365832023-08-22T02:06:55Z https://eprints.ums.edu.my/id/eprint/36583/ Determinants of financial risk tolerance: Evidence from the Indonesian millennials Suherman Suherman Herni Kurniawati Rosle Mohidin DS611-649 Indonesia (Dutch East Indies) HG1-9999 Finance The purpose of this study is to examine the level of Indonesian millennials’ financial risk tolerance and the effect of gender, family occupation background, geographical location and financial literacy on financial risk tolerance. This research applies a quantitative approach using primary data that were collected through questionnaires. The sample used for this survey comprises 410 university students from western (Java, Sumatra, Kalimantan) and eastern (Bali, Nusa Tenggara, Sulawesi, Maluku, Papua) parts of Indonesia. The online survey was distributed to various universities in Indonesia. The one-way ANOVA and multiple regression methods were used for the analysis. The results show that: 1) the level of Indonesian millennials’ risk tolerance is moderate, 2) the level of Indonesian millennials’ financial risk tolerance is different, 3) gender, geographical location and financial literacy significantly affect the financial risk tolerance, and 4) family occupation background does not significantly affect the financial risk tolerance. These findings offer managerial insights into business practices in the financial industry to develop individualized investment portfolios based on investors’ financial risk tolerance. In addition, financial advisors are recommended to offer relatively riskier financial products to millennials from West Indonesia and those with higher financial literacy. Conscientia Beam 2023 Article NonPeerReviewed text en https://eprints.ums.edu.my/id/eprint/36583/1/ABSTRACT.pdf text en https://eprints.ums.edu.my/id/eprint/36583/2/FULL%20TEXT.pdf Suherman Suherman and Herni Kurniawati and Rosle Mohidin (2023) Determinants of financial risk tolerance: Evidence from the Indonesian millennials. Humanities and Social Sciences Letters, 11 (1). pp. 67-82. ISSN 2312-5659 https://doi.org/10.18488/73.v11i1.3300 |
| spellingShingle | DS611-649 Indonesia (Dutch East Indies) HG1-9999 Finance Suherman Suherman Herni Kurniawati Rosle Mohidin Determinants of financial risk tolerance: Evidence from the Indonesian millennials |
| title | Determinants of financial risk tolerance: Evidence from the Indonesian millennials |
| title_full | Determinants of financial risk tolerance: Evidence from the Indonesian millennials |
| title_fullStr | Determinants of financial risk tolerance: Evidence from the Indonesian millennials |
| title_full_unstemmed | Determinants of financial risk tolerance: Evidence from the Indonesian millennials |
| title_short | Determinants of financial risk tolerance: Evidence from the Indonesian millennials |
| title_sort | determinants of financial risk tolerance evidence from the indonesian millennials |
| topic | DS611-649 Indonesia (Dutch East Indies) HG1-9999 Finance |
| url | https://eprints.ums.edu.my/id/eprint/36583/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/36583/2/FULL%20TEXT.pdf |
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