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Risks 2019, 7(1), 12; https://doi.org/10.3390/risks7010012

Measuring Equity Share Related Risk Perception of Investors in Economically Backward Regions

1
Department of Management Studies, Indian Institute of Information Technology, Allahabad 211012, India
2
Department of Business Administration, Assam University, Silchar 788011, India
*
Author to whom correspondence should be addressed.
Received: 7 December 2018 / Revised: 14 January 2019 / Accepted: 14 January 2019 / Published: 30 January 2019
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Abstract

Risk perception is an idiosyncratic process of interpretation. It is a highly personal process of making a decision based on an individual’s frame of reference that has evolved over time. The purpose of this paper is to find out the risk perception level of equity investors and to identify the factors influencing their risk perception. The study was conducted using a stratified random sampling design of 358 investors. It was found that the overall risk perception level of equity investors is moderate and that the main factors affecting their risk perception are information screening, investment education, fear psychosis, fundamental expertise, technical expertise, familiarity bias, information asymmetry, understanding of the market, etc. Considering the above findings, efforts should be made to bring people with a high risk perception to the low risk perception category by providing them with training to handle or manage high-risk scenarios which will help in promoting an equity-investment culture. View Full-Text
Keywords: risk; risk perception; equity investment; risk propensity; factor analysis risk; risk perception; equity investment; risk propensity; factor analysis
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Singh, R.; Bhattacharjee, J. Measuring Equity Share Related Risk Perception of Investors in Economically Backward Regions. Risks 2019, 7, 12.

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