JP Journal of Heat and Mass Transfer
Special Volume, Issue I, Advances in Mechanical System and ICT-convergence, Pages 95 - 100
(June 2018) http://dx.doi.org/10.17654/HMSI118095 |
|
SUPPORTING THE UNDERSTANDING INVESTOR BEHAVIOR AND THE EFFECTIVE COMMUNICATION
Patsiree Worawachtanakul, Tanakorn Likitapiwat and Chaipat Lawsirirat
|
Abstract: Understanding the risk characteristic of financial product is a crucial point for investment decision. Basically, the risk measurement which currently used in key investor information documents is “standard deviations” as the risk category. This document provides critical information for retail investors. Standard deviation is utilized as a risk measurement tool in traditional finance, however, some arguments stated the validation of this measurement such as the multidimensionality of risk and the accuracy of subjective measurement. Consequently, this research aims to investigate the insight of investors’ risk perception and measurement under financial scenario experiment. The experimental design was setting data from expected return and possibility to gain and loss collaborated with mathematical computing for generating the characteristic of measurements. The results are particularly useful in financial investment context and also support the understanding investor behavior and the effective communication between financial regulators, advisors and investors. |
Keywords and phrases: risk perception, risk measurement, investment risk measurement, financial risk measurement, individual investors, risk communication, risk insight, behavioral finance. |
|
Number of Downloads: 313 | Number of Views: 2699 |
|