Risk Taking in Financial Decisions as a Function of Age, Gender: Mediating Role of Loss Aversion and Regret

摘要

The present study investigated how age and gender affect risk taking ability of the investors in their financial decisions through psychological biases such as loss aversion and regret. A total of 450 investors (372 Males, 93 Females) of two age groups (25-40 years and 41-55 years) from northern part of India participated in the study. Conceptual framework was formulated and tested using AMOS 20 to understand the relationship of age, gender and risk taking ability through loss aversion and regret. The results supported our proposed hypotheses. Main results have confirmed the proposed model of analysis, pointing that the impact of age, gender on risk taking ability operates through behavioral biases (loss aversion and regret) of the investors.