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Predictors of investment in risky assets among Malaysian families.

Investment, as a strategy to enhance financial well-being, is exposed to high expected risk in order to gain high expexted returns. This study focused on the effects of personality and behavioural factors in predicting investments in risky assets. The personality factors studied were future time ori...

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Main Authors: Husniyah Abdul Rahim,, Zuroni Md Jusoh,, Fazilah Abdul Samad, M
Format: Article
Published: Penerbit Universiti Kebangsaan Malaysia 2012
Online Access:http://journalarticle.ukm.my/5828/
http://pkukmweb.ukm.my/penerbit/jem.htm
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spelling my-ukm.journal.58282013-01-14T01:31:58Z http://journalarticle.ukm.my/5828/ Predictors of investment in risky assets among Malaysian families. Husniyah Abdul Rahim, Zuroni Md Jusoh, Fazilah Abdul Samad, M Investment, as a strategy to enhance financial well-being, is exposed to high expected risk in order to gain high expexted returns. This study focused on the effects of personality and behavioural factors in predicting investments in risky assets. The personality factors studied were future time orientation,financial risk tolerance and self-worth whilst the behavioural factors concerned were the dimensions of financial management practices of families. Quota sampling based on ethnicity was useda total of 800 respondents,namedly the reported family financial manager from families residing in Peninsular Malaysia. Investment in risky assets was based on the self-reported investment in stocks. Binary logistic regression analysis revealed financial risk tolerance, self-worth record-keeping credit, saving and risk management significant predictors of investment in risky assets. Family financial managers who were more risk-tolerant with higher self-worth tend to invest in risky assets.Furthermore, those who perform record keeping;regularly save and manging risk well were also more likely to invest in risky assets. However. those managing credit wisely were less likely to invest in risky assets. The most influential factors for predicting investment in risky assets found in this study were savings, Followed by self-worth, risk practices, record-keeping and financial risk tolerance. The findings provided evidence that specific personality factors and financial management practices did predict investment in risky assets.Knowing these factors will enable financial planners to identify those with potential to invest type of assets in order to gain greater return from their investment.As for those families having such personality and performing influential financial practices,they whould realise their capability in risky investment.However for those having low self=worth, less tolerating with financial risk and hardly did those influential financial practices, they could be trained to make them capable to invest in risky assets. More families would have the potential to invest in risky assets that can lead to financial stability in the run. Additionally, this will contribute to the economic growth of the country. Penerbit Universiti Kebangsaan Malaysia 2012 Article PeerReviewed Husniyah Abdul Rahim, and Zuroni Md Jusoh, and Fazilah Abdul Samad, M (2012) Predictors of investment in risky assets among Malaysian families. Jurnal Ekonomi Malaysia, 46 (1). pp. 27-37. ISSN 0127-1962 http://pkukmweb.ukm.my/penerbit/jem.htm
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
description Investment, as a strategy to enhance financial well-being, is exposed to high expected risk in order to gain high expexted returns. This study focused on the effects of personality and behavioural factors in predicting investments in risky assets. The personality factors studied were future time orientation,financial risk tolerance and self-worth whilst the behavioural factors concerned were the dimensions of financial management practices of families. Quota sampling based on ethnicity was useda total of 800 respondents,namedly the reported family financial manager from families residing in Peninsular Malaysia. Investment in risky assets was based on the self-reported investment in stocks. Binary logistic regression analysis revealed financial risk tolerance, self-worth record-keeping credit, saving and risk management significant predictors of investment in risky assets. Family financial managers who were more risk-tolerant with higher self-worth tend to invest in risky assets.Furthermore, those who perform record keeping;regularly save and manging risk well were also more likely to invest in risky assets. However. those managing credit wisely were less likely to invest in risky assets. The most influential factors for predicting investment in risky assets found in this study were savings, Followed by self-worth, risk practices, record-keeping and financial risk tolerance. The findings provided evidence that specific personality factors and financial management practices did predict investment in risky assets.Knowing these factors will enable financial planners to identify those with potential to invest type of assets in order to gain greater return from their investment.As for those families having such personality and performing influential financial practices,they whould realise their capability in risky investment.However for those having low self=worth, less tolerating with financial risk and hardly did those influential financial practices, they could be trained to make them capable to invest in risky assets. More families would have the potential to invest in risky assets that can lead to financial stability in the run. Additionally, this will contribute to the economic growth of the country.
format Article
author Husniyah Abdul Rahim,
Zuroni Md Jusoh,
Fazilah Abdul Samad, M
spellingShingle Husniyah Abdul Rahim,
Zuroni Md Jusoh,
Fazilah Abdul Samad, M
Predictors of investment in risky assets among Malaysian families.
author_facet Husniyah Abdul Rahim,
Zuroni Md Jusoh,
Fazilah Abdul Samad, M
author_sort Husniyah Abdul Rahim,
title Predictors of investment in risky assets among Malaysian families.
title_short Predictors of investment in risky assets among Malaysian families.
title_full Predictors of investment in risky assets among Malaysian families.
title_fullStr Predictors of investment in risky assets among Malaysian families.
title_full_unstemmed Predictors of investment in risky assets among Malaysian families.
title_sort predictors of investment in risky assets among malaysian families.
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2012
url http://journalarticle.ukm.my/5828/
http://pkukmweb.ukm.my/penerbit/jem.htm
_version_ 1643736557177274368
score 13.211869

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