SavedAdd your journal

Journals / Journal of Economics Finance and Accounting / 2026 / Volume: 5 Issue: 3

THE IMPACTS OF PERCEIVED RISK AND RISK PROPENSITY ON FINANCIAL WELL-BEING: AN APPLICATION ON BANK EMPLOYEES

İsmail Atabay0000-0001-8979-5548
Bayram Alamur0000-0002-1364-5604
Aysegul Yildirim Kutbay0000-0002-3100-2928
Fatih Koc0000-0002-4751-2340
Fatik Karakas0000-0002-7982-8454
Pages
—
Publication Date
2018-09-30
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Conclusion- As a result of there search, it is determined that individuals with high risk perception have a low risk propensity and those with high risk propensity will not see themselves very well financially, the expectation of the future financial situation of those who feel good financially in the current situation is also positive.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Purpose- This study seeks to determine the impact of perceived risk on risk propensity and the impact of both variables on financial well-being.
📊
Key Findings & Data:Methodolgy- The questionnaire prepared by using the Perceived Risk and Risk Propensity scales obtained from the study of Hunjra et al. (2017) and the Financial Well Being adapted from the study of Norvilitis et al. (2003) was applied to 679 employees in banks operating in Balıkesir province and the results were analyzed and interpreted using SPSS 22 and AMOS package programs.
💡
Conclusion & Impact:Conclusion- As a result of there search, it is determined that individuals with high risk perception have a low risk propensity and those with high risk propensity will not see themselves very well financially, the expectation of the future financial situation of those who feel good financially in the current situation is also positive.
🔬Design:Lab & Field Experiment
📍Scope:2017 Verileri
⚙️Variables:Perceived risk · risk propensity · financial well-being

Abstract

Purpose- This study seeks to determine the impact of perceived risk on risk propensity and the impact of both variables on financial well-being. Methodolgy- The questionnaire prepared by using the Perceived Risk and Risk Propensity scales obtained from the study of Hunjra et al. (2017) and the Financial Well Being adapted from the study of Norvilitis et al. (2003) was applied to 679 employees in banks operating in Balıkesir province and the results were analyzed and interpreted using SPSS 22 and AMOS package programs. Findings- It has been determined in the research that the effect on the risk propensity of perceived risk is negative and meaningful and the effect of perceived risk on the existing financial condition and future financial situation expectancy dimensions of financial well-being determined to be in significant. It has been determined that the effecweeeeet of risk propensity on the existing financial condition and future financial situation expectancy dimensions of financial well-being is negative and meaningful. It has been also determined that the effect of the existing financial condition dimension of financial well-being on the future financial situation expectancy dimension of financial well-being positive and meaningful. Conclusion- As a result of there search, it is determined that individuals with high risk perception have a low risk propensity and those with high risk propensity will not see themselves very well financially, the expectation of the future financial situation of those who feel good financially in the current situation is also positive.

🔖

Cite This Article

Atabay, İ., Alamur, B., Kutbay, A. Y., Koc, F., Karakas, F. (2018). THE IMPACTS OF PERCEIVED RISK AND RISK PROPENSITY ON FINANCIAL WELL-BEING: AN APPLICATION ON BANK EMPLOYEES. Journal of Economics Finance and Accounting, Volume: 5 Issue: 3. https://ajindex.com/articles/1591970

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (81)

  1. Anbar, A., Eker, M. (2012). Bireysel yatırımcıların finansal risk algılamalarını etkileyen demografik ve sosyoekonomik faktörler. ZKÜ Sosyal Bilimler Dergisi, 5(9), 129-150.
  2. Bajtelsmit, V. L. (1999). Evidence of risk aversion in the health and retirement study. March 1, 1-18, http://www.aria.org/rts/proceedings/1999/risk_aversion.htm, (Erişim Tarihi: 13.05.2018).
  3. Bellante, D., Green, C. A. (2004). Relative risk aversion among the elderly. Review of Financial Economics, 13(3), 269–281.
  4. Brüggen, E., Hogreve, J., Holmlu, M., Kabadayi, S., Löfgren, M. (2017). Financial well-being: a conceptualization and research agenda. Journal of Business Research, 79, 228-237.
  5. Clark, A., Frijters, P., Shields, M. (2008). Relative income, happiness, and utility: an explanation for the Easterlin paradox and other puzzles. Journal of Economic Literature aamerican Economic Association, 46(1), 95-144.
  6. Deniz, A., Erciş, A. (2008). Kişilik özellikleri ile algılanan risk arasındaki ilişkilerin incelenmesi üzerine bir araştırma. Atatürk Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 22(2), 301-329.
  7. Deo, M., Sundar, V. (2015). Gender difference: investment behavior and risk taking. SCMS Journal of Indian Management, 12(3), 74-81.
  8. Dholakia, U. (2001). A motivational process model of product involvement and consumer risk perception. European Journal of marketing, 35 (11/12), 1340-1362.
  9. Dohmen, T. J., Falk, A., Huffman, D., Sunde, U., Schupp, J., Wagner, G. G. (2005). Individual risk attitudes: new evidence from a large, representative, experimentally-validated survey. IZA Discussion Paper, No.1730, September.
  10. Dwyer, P. D., Gilkeson, J. H., List, J. A. (2002). Gender differences in revealed risk taking: evidence from mutual fund investors. Economics Letters, 76(2), 151-158.
  11. Erdem, F. (2001). Girişimcilerde risk alma eğilimi ve belirsizliğe tolerans ilişkisine kültürel yaklaşım. Akdeniz University Faculty of Economics & Administrative Sciences Faculty Journal/Akdeniz Universitesi Iktisadi ve Idari Bilimler Fakultesi Dergisi, 1(2), 43-61.
  12. Falahati, L., Paim, L. (2011). Gender differences in financial well-being among college students. Australian Journal of Basic and Applied Sciences, 5(9), 1765-1776.
  13. Fıkırkoca, M. (2003). Bütünsel risk yönetimi. Ankara: Pozitif Matbaacılık.
  14. Finke, M. S., Huston, S. J. (2003). The brighter side of financial risk: financial risk tolerance and wealth. Journal of Family and Economic Issues, 24(3), 233-256.
  15. Fornell, C., Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: algebra and statistics. Journal of Marketing Research, 382-388.
  16. Gaskin, J. (2018). Confirmatory factor analysis. Gaskination's StatWiki, http://statwiki.kolobkreations.com, (Erişim Tarihi: 15.05.2018)
  17. Grable, J. E., Lytton, R. H. (1998). Investor risk tolerance: testing the efficacy of demographics as differentiating and classifying factors. Financial Counseling and Planning, 9(1), 61-73.
  18. Grable, J. E., Lytton, R. (1999a). Financial risk tolerance revisited: the development of a risk assessment instrument. Financial Services Review, 8(3), 163-181.
  19. Grable, J. E., Lytton, R. H. (1999b). Assessing financial risk tolerance: do demographic, socioeconomic and attitudinal factors work?. Family Relations and Human Development/Family Economics and Resource Management Biennial, 3, 1-9.
  20. Grable, J. E. (2000). Financial risk tolerance and additional factors that affect risk taking in everyday money matters. Journal of Business and Psychology, 14(4), 625-630.
  21. Grable, J. E., Joo, S. H. (2000). A cross-disciplinary examination of financial risk tolerance. Consumer Interests Annual, 46, 151-157.
  22. Grable, J. E., Joo, S. (2004). Environmental and biophysical factors associated with financial risk tolerancex. Journal of Financial Counseling and Planning, 15(1), 73-82.
  23. Grable, J. E., Lytton, R., O'Neill, B. (2004). Projection bias and financial risk tolerance. The Journal of Behavioral Finance, 5(3), 142-147.
  24. Grable, J. E., Lytton, R. H., O'neill, B., Joo, S. H., Klock, D. (2006). Risk tolerance, projection bias, vividness and equity prices. The Journal of Investing, 15(2), 68-74.
  25. Gutter, M., Fontes, A. (2006). Racial differences in risky asset ownership: a two-stage model of the investment decision-making process. Journal of Financial Counseling and Planning,, 17(2), 64-78.
  26. Gutter, M., Copur, Z. (2011). Financial behaviors and financial well-being of college students: evidence from a national survey. Journal of Family and Economic Issues, 32(4), 699–714.
  27. Gürsoy, Ş. T., Çiçekçioğlu, M., Börekçi, N., Soyer, M. T., Öcek, Z. (2008). İzmir Karşıyaka Belediye çalışanlarında çevresel risk algılama düzeyi. Cumhuriyet Üniversitesi Tıp Fakültesi Dergisi, 30 (1), 20-27.
  28. Hair, J., Black, W., Babin, B., Anderson, R. (2010). Multivariate data analysis (7. baskı b.). Pearson.
  29. Hallahan, T. A., Faff, R. W., McKenzie, M. D. (2004). An empirical investigation of personal financial risk tolerance. Financial Services Review -Greenwıch-, 13(1), 57-78.
  30. Haliassos, M., Bertaut, C. C. (1995). Why do so few hold stocks?. The Economic Journal, 105(432), 1110-1129.
  31. Hanna, S. D., Lindamood, S. (2005). Risk tolerance of married couples. Proceeding of the Academy of Financial Services, October, 1-28.
  32. Harrison, G. W., Lau, M. I., Rutström, E. E. (2007). Estimating risk attitudes in Denmark: a field experiment. The Scandinavian Journal of Economics, 109(2), 341-368.
  33. Hawley, C. B. Fuji, E. T. (1993-1994). An empirical analysis of preferences for financial risk: further evidence on the Friedman-Savage model. Journal of Post Keynesian Economics, 16(2), 197-204.
  34. Hunjra, A., Qureshi, Riaz, L. (2017). Psychological factors and investment decision making: a confirmatory factor analysis. Journal of Contemporary Management Sciences, 2(1), 65-82.
  35. Hooper, D., Coughlan, J., Mullen, M. (2008). Structural equation modelling: guidelines for determining model fit. Articles, 2.
  36. İslamoğlu, A. H., Alnıaçık, Ü. (2016). Sosyal bilimlerde araştırma yöntemleri. Genişletilmiş 5. Baskı, Beta Yayınevi.
  37. Jianakoplos, N. A., Bernasek, A. (1998). Are women more risk averse?. Economic Inquiry, 36(4), 620-630.
  38. Jianakoplos, N. A., Bernasek, A. (2006). Financial risk taking by age and birth cohort. Southern Economic Journal, 72(4), 981-1001.
  39. Joo, S., Grable, J. (2004). An exploratory framework of the determinants of financial satisfaction. Journal of Family and Economic Issues, 25(1), 25–50.
  40. Kannadhasan, M. (2015). Retail investors' financial risk tolerance and their risk-taking behaviour: the role of demographics as differentiating and classifying factors. IIMB Management Review, 27(3), 175-184.
  41. Karafakıoglu, M. (2005). Pazarlama ilkeleri. Birinci Basım, Literatür Yayıncılık, İstanbul.
  42. Kim, J. (2000). The effects of workplace financial education on personal finances and work. Unpublished doctoral dissertation. Virginia Polytechnic Institute and State: Blacksburg.
  43. Koç, E. (2012). Tüketici davranışı ve pazarlama stratejileri: global ve yerel yaklaşım: pazarlama ve tüketici davranışı kavramlarının ingilizceleriyle. Seçkin Yayıncılık.
  44. Kotler, P. (2000). Marketing management. New Jersey: Prentice Hall.
  45. Kutbay, A., Özbek, V., Koç, F. (2017). Kişisel faktörler ve postmodern tüketim şekillerinin finansal iyi olma hali üzerindeki etkisi. In Proceedings of 2 nd International Conference on Scientific Cooperation for the Future in the Economics and Administrative Sciences, 262-273.
  46. Linnas, A. (2012). Risk propensity of corporate financial executives: cross-country comparison. (Doctoral dissertation, Tartu Ülikool).
  47. Malone, K., Stewart, S., Wilson, J., Korschi, P. (2010). Perceptions of financial well-being among American women in diverse families. Journal of Family and Economic Issues, 31(1), 63–81.
  48. Mittal, M., Vyas, R. (2007). Demographics and investment choice among Indian investors. ICFAI Journal of Behavioural Finance, 4(2), 12-20.
  49. Munro, B. H. (2005). Statistical methods for health care research (Vol. 1). Lippincott Williams & Wilkins.
  50. Norvilitis, J., Szablicki, B., Wilson, S. D. (2003). Factors influencing levels of credit-card debt in college students. Journal of Applied Social Psychology, 33(5), 935-94.
  51. Olsen, R. A., Cox, C. M. (2001). The influence of gender on the perception and response to investment risk: the case of professional investors. The Journal of Psychology and Financial Markets, 2(1), 29-36.
  52. Prawitz, A., Garman, E., Sorhaindo, B., O’Neill, B., Kim, J., Drentea, P. (2006). Incharge financial distress/ financial well-being scale: development, administration, and score interpretation. Financial Counseling and Planning, 17(1), 34-50.
  53. Rana, M. H., Murtaza, S., Noor, F., Rehman, K. (2011). Effects of demographic factors on risky decision-making behaviour. European Journal of Social Sciences, 25(3), 69-76.
  54. Roszkowski, M., Davey, G. (2010). Risk perception and risk tolerance changes attributable to the 2008 economic crisis: a subtle but critical difference. Journal of Financial Service Professionals, 64(4), 42-53.
  55. Sabri, M., Falahati, L. (2012). Estimating a model of subjective financial well-being among college students. International Journal of Humanities and Social Science, 2(18), 191-199.
  56. Saraç, M., Kahyaoğlu, M. (2011). Bireysel yatırımcıların risk alma eğilimine etki eden sosyo-ekonomik ve demografik faktörlerin analizi. Journal of BRSA Banking & Financial Markets,, 5(2), 135- 157.
  57. Schreiber, J. B., Nora, A., Stage, F. K., Barlow, E. A., King, J. (2006). Reporting structural equation modeling and confirmatory factor analysis results: a review. The Journal of educational research, 99(6), 323-338.
  58. Schumacker, R. E., Lomax, R. G. (2010). A beginners guide to structural equation modeling. New York: Routledge.
  59. Shim, S., Xiao, J., Barber, B., Lyons, A. (2009). Pathways to life success: a conceptual model of financial well-being for young adults. Journal of Applied Developmental Psychology, 30(6), 708–723.
  60. Short, J. (1984). The social fabric at risk: toward the social transformation of risk analysis. American Sociological Review, 49(6), 711-725.
  61. Sitkin, S., Pablo, A. (1992). Reconceptualizing the determinants of risk behavior. Academy of Management Review, 17(1), 9-38.
  62. Sjöberg, L. (1991). Risk perception by experts and the public. Center for Risk Research Stockholm School of Economics.
  63. Stewart Jr, W., Roth, P. (2001). Risk propensity differences between entrepreneurs and managers: a meta-analytic review. Journal of Applied Psychology,, 86(1), 145-153.
  64. Stone, R., Grønhaug, K. (1993). Perceived risk: further considerations for the marketing discipline. European Journal of marketing, 27(3), 39-50.
  65. Sunal, O. (2012). Finansal iyilik hali ölçegi (FIHÖ): gecerlik ve güvenirlik calismasi/financial well-being scale (FWBS): a study of validity and reliability. Ege Akademik Bakis, 12(2), 209-214.
  66. Sung, J., Hanna, S. (1996). Factors related to risk tolerance. Financial Counseling and Planning, 7, 11-19.
  67. Şimşek, Ö. F. (2007). Yapısal eşitlik modellemesine giriş: temel ilkeler ve LISREL uygulamaları. Ekinoks.
  68. Taft, M., Hosein, Z., Mehrizi, S., Rosha, A. (2013). The relation between financial literacy, financial wellbeing and financial concerns. International Journal of Business and Management, 8(11), 63-75.
  69. TDK (2018). Genel Türkçe Sözlük. Türk Dil Kurumu, http://www.tdk.gov.tr/index.php?option=com_gts, (Erişim Tarihi: 17.05.2018).
  70. Vosloo, W., Fouche, J., Barnard, J. (2014). The relationship between financial efficacy, satisfaction with remuneration and personal financial well-being. International Business and Economics Research Journal, 13(6), 1455–1470.
  71. Waltz C. F., Strickland O. L., Lenz E. R. (Eds.). (2010). Measurement in nursing and health research. Springer Publishing Company.
  72. Wang, H., Hanna, S. D. (1997). Does risk tolerance decrease with age?. Financial Counseling and Planning, 8(2), 27-31.
  73. Watson, J., McNaughton, M. (2007). Gender differences in risk aversion and expected retirement benefits. Financial Analysts Journal, 63(4), 52-62.
  74. Yang, Y. (2004). Measuring risk preferences: re-examination of Grable & Lytton’s 13-item questionnaire. Consumer Interests Annual, 50(2), 119-122.
  75. Yao, R., Hanna, S. D. (2005). The effect of gender and marital status on financial risk tolerance. Journal of Personal Finance, 4(1), 66-85.
  76. Brüggen, E., Hogreve, J., Holmlu, M., Kabadayi, S., Löfgren, M. (2017). Financial well-being: a conceptualization and research agenda. Journal of Business Research, 79, 228-237.
  77. Falahati, L., Paim, L. (2011). Gender differences in financial well-being among college students. Australian Journal of Basic and Applied Sciences, 5(9), 1765-1776.
  78. Grable, J. E., Joo, S. (2004). Environmental and biophysical factors associated with financial risk tolerancex. Journal of Financial Counseling and Planning, 15(1), 73-82.
  79. Gutter, M., Fontes, A. (2006). Racial differences in risky asset ownership: a two-stage model of the investment decision-making process. Journal of Financial Counseling and Planning,, 17(2), 64-78.
  80. Kutbay, A., Özbek, V., Koç, F. (2017). Kişisel faktörler ve postmodern tüketim şekillerinin finansal iyi olma hali üzerindeki etkisi. In Proceedings of 2 nd International Conference on Scientific Cooperation for the Future in the Economics and Administrative Sciences, 262-273.
  81. Taft, M., Hosein, Z., Mehrizi, S., Rosha, A. (2013). The relation between financial literacy, financial wellbeing and financial concerns. International Journal of Business and Management, 8(11), 63-75.