Determinants of Overall Risk-Taking and Financial Risk Tolerance: Experimental Evidence from Turkey
Chapter from the book:
Kandemir,
T.
&
Buğan,
M.
F.
(eds.)
2022.
Financial and Economic Issues in Emerging Markets.
Synopsis
This study aims to investigate the relationship between demographic characteristics and overall risk-taking levels, and financial risk tolerance. Using the microdata set of 15,041 respondents, we examine the factors influencing the level of individuals’ overall risk-taking level and financial risk tolerance for Turkey. Although many studies investigate the effect of demographic parameters on risk tolerance for different countries, there is no study that examines the determinants of risk tolerance using comprehensive data that represent the whole Turkish population. The study’s main contribution is the representation of the population of Turkey because the sample covers 89% of the total households in Turkey and the participants are the decision-makers in their households. The findings demonstrate that while gender, marital status, and ability to plan for the future affect individuals’ overall risk-taking level and financial risk tolerance, education only affects financial tolerance. There is a weak but significant negative relationship between age and overall risk-taking level and financial risk tolerance.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
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Copyright (c) 2022 Tuğrul Kandemir- Mehmet Fatih Buğan; Yunus Yılmaz- Yıldız Yıldız- İbrahim Yenigün- Şükriye Gül Reis- Muhammed Hadin Öner- İbrahim Arslan- Tuğçe Metin- Yusuf Bozgeyik- Muhammed Fatih Yürük- Nazan Güngör Karyağdı- Ahmet Şit- Hasan Dinçer- Serhat Yüksel- Duygu Yavuz- Fatih Günay- Cengiz Toraman- Elif Ulucenk- Hüseyin Burgazoğlu- Mervan Selçuk- Salih Ülev- Adnan Söylemez- Hakkı M. Ay- Hüseyin Özdemir- Eray Gemici- Yunus Kılıç- Bülent Yıldız- Şemsettin Çiğdem- Cebrail Telek