Measuring Financial Risk taking using a dual preference approach for determination of Financial Satisfaction

Abstract

The purpose of this study is to measure the dual dimensions of financial risk taking and to find out how these dimensions relate to the financial satisfaction of the individual investors. A context specific measure of financial risk taking was developed based on existing measures and the final survey was conducted on 377 respondents. The results showed that clusters of the dimensions of financial risk taking were found to be significantly associated with financial satisfaction and for high risk control attitude, an increase in speculative risk tendency increases financial satisfaction. The paper presents a novel insight into the dimensions of financial risk taking and how they relate to financial satisfaction.