International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

Do Socio-Economic factors really Influence risk taking Behavior of individual Investors?

Author Affiliations

  • 1Department of Business Administration, IQRA University,PAKISTAN
  • 2 Department of Business Administration, Indus University, PAKISTAN

Res. J. Management Sci., Volume 3, Issue (6), Pages 10-13, June,6 (2014)


Individuals belonging to different socio-economic classes exhibit varying risk taking behaviors. In this paper, it has been examined that the risk taking behavior considers various socio-economic characteristics like income, age, gender, occupation, education and marital status. This study is carried across different communities (i.e., Ismaili, Memon, Hindu, Sheikh, Delhi Sodagran, Chinioiti, Behari and others). Survey method is used to collect the primary data through snowball sampling. 200 respondents participated in the survey. For hypothesis testing chi-square test is applied in SPSS and results reveal that marital status, age, income, education and occupation is significantly associated with risk taking behavior whereas gender has no association with risk taking behavior. Further, it is also explored that risk taking behavior across the communities is not significantly different.


  1. Lutfi, The relationship between demographic factors and investment decision in Surabaya, Journal of Economics, Business and Accountancy Ventura, 13(3), 213–224 (2010)
  2. James Farrell, Demographics of risky investing, Research in Business and Economics Journal (Special Edition),Florida Economic Symposium (2010)
  3. Michael S. Gutter, Jonathan J. Fox and Catherine P. Montalto, Racial differences in investor decision making, Financial Services Review, 8, 149–162 (1999)
  4. Gutter M.S. and Fontes A., Racial differences in risky asset ownership: A two-stage model of the investment decision-making process, Financial Counseling and Planning, 17(2), 64-78 (2006)
  5. Korniotis G.M. and A. Kumar, Do behavioral biases adversely affect the macro economy?Review of Financial Studies, 24, 1513-1559 (2011)
  6. Anderson, Torben M., Bhattacharya, Joydeep, On Myopia As Rationale for Social Security, Economic Theory, 47(1),135-158 (2011)
  7. Mittal M. and Vyas R., Demographics and investment choice among Indian investors, The ICFAI Journal of Behavioral Finance, 4(4), 51–65 (2007)
  8. Kannadhasan M. and R. Nandagopal, Do the Company-specific Factors influence the extent of usage of Risk analysis in Strategic Investment Decisions, ICFAI Journal of Financial Risk Management, 7(4), 55-72 (2010)
  9. Weiping Liu and CHEN Chong, A Demographic and Psychometrical Study of Household Financial Investment Behaviors in China’s Beijing Urban Area, Asia Pacific Journal of Finance and Banking Research, Global Business Investments and Publications, 5(5), 1-14, Indexed in Cabell's Directory (2011)
  10. Chavis, Larry W. and Klapper, Leora F. and Love, Inessa, The impact of the business environment on young firm financing, The world bank development research group{working paper} (2010)
  11. Yash Pal Davar, Suveera Gill, investment decision making an empirical study of perceptual view of investors, Metamorphosis, A journal of Management Research, IIM, Luckow, 6(2),(2007)
  12. Lucy F. Ackert (, Bryan K. Church and Basil Englis Journal of Economic Behavior and Organization, 47(4), 423-433 (2002)
  13. Grable J.E., An investigation of four investor risk preference rules-of-thumb, Consumer Interests Annual, 43, 227-230 (1997)