Factors Affecting Financial Risk Tolerance on Young Investors in Indonesia

Farah Margaretha Leon, Angie Angie


This study aims to analyze the influence of self-esteem, personality, and sensation seeking on financial risk tolerance. Data obtained directly through the distribution of questionnaires to 323 respondents i.e., young investors (aged 16 to 30 years) in Indonesia. The research design used in this research is hypothesis testing. The analytical method used in this research is structural equation model (SEM) using AMOS program.

The results of this study are. First, self-esteem has a positive effect on financial risk tolerance. Second, personality has a positive effect on financial risk tolerance. Third, sensation-seeking positively affects financial risk tolerance. Young investors can use this study in making an investment or financial decisions in accordance with the level of its financial risk tolerance. For financial consultants, this research can be used in identifying the determinants of financial risk tolerance level in order to suggest the right investment alternatives for clients.


Self-Esteem, Personality, Seeking Sensation, Financial Risk Tolerance

Full Text:


Article Metrics

Abstract views : 451| PDF views : 0


Aziz, V.R.A. (2015). Pengaruh persepsi risiko dan gaya hidup terhadap keputusan pembelian pakaian secara online melalui blackberry messenger (BBM). eJournal Psikologi, 4(1): 95-106.

Bailey, J. J., & Kinerson, C. (2005). Regret avoidance and risk tolerance. Financial Counseling and Planning, 16(1), 23–28.

Bashir, T., Azam, N., Butt, A. A., Javed, A., & Tanvir, A. (2013). Are behavioral biases influenced by demographic characteristics & personality traits? Evidence from Pakistan. European Scientific Journal, 9(29), 277–293.

Bodie, Z., Kane, A., & Marcus, A. J. (2014). Investments, 10th Edition. McGraw Hill.

Chatterjee, S., Finke, M., & Harness, N. (2009). Individual wealth management: Does self-esteem matter?. Journal of Applied Business and Economics, 10(2), 1–14.

Christanti, N., & Mahastanti, L.A. (2011). Faktor-faktor yang dipertimbangkan investor salam melaukukan investasi. Jurnal Manajemen Teori dan Terapan. Vol.4, No.3, hlm 37-51.

Gautam, S., & Matta, M. (2016). Socio-demographic determinants of financial behaviour of individual investors in India. Journal of IMS Group. Vol 13 No 1, pp.38-49.

Grable, J. E., & Joo, S.-H. (2004). Environmental and biopsychosocial factors associated with financial risk tolerance. Financial Counseling and Planning, 15(1), 73–82.

Grable, J. E., Britt, S L., & Webb, F. J. (2008). Environmental and biopsychosocial profiling as a means for describing financial risk-taking behavior. Journal of Financial Counseling and Planning Volume, 19(2), 3–18.

Hair, J., Black, W.C., Babin, B.J., & Anderson, R.E. (2013) Multivariate Data Analysis 7 Edition. New Jersey: Pearson Education, Inc.

Kannadhasan, M., Aramvalarthan, S., Mitra, S.K. & Goyal, V. (2016). Relationship between biopsychosocial factors and financial risk tolerance: An empirical study. The Journal for Decision Makers, 41(2) 117-131.

Putri, F.K., Bramanti. G.W., & Hakim. M.S. (2017). Pengaruh faktor kepribadian terhadap toleransi risiko keputusan investasi saham. Jurnal Teknik ITS. Vol.06, No.1, hlm A113-1A37.

Lestari, W., & Iramani, Rr. (2013). Persepsi risiko dan kecenderungan risiko investor individu. Jurnal Keuangan dan Perbankan, Vol.17, No.1, hlm. 78-88.

Mahrofi, Z. (2017, February 19). BEI: Pertumbuhan investor aktif baru 2016 didominasi usia 17-30 Tahun. Anantaranews. Retrieved from http://www.antaranews.com/berita/613341/bei-pertumbuhan-investor-aktif-baru-2016-didominasi-usia-17-30-tahun

Moreschi, R. W. (2011). An analysis of the ability of individuals to predict their own risk tolerance. Journal of Business and Economics Research, 3(2), 39–48.

Pak, O., & Mahmood, M. (2015). Impact of personality on risk tolerance and investment decisions: A study on potential investors of Kazakhstan. International Journal of Commerce and Management, Vol. 25 Issue: 4, pp.370-384.

Pujiyanto, N. (2013). Regret aversion bias dan risk tolerance dalam keputusan investasi investor muda Jakarta dan Surabaya. Jurnal Manajemen dan Kewirausahaan. Vol. 10, No. 20, hlm 163-168.

Reilly, F., & Brown, K.C. (2012). Investment Analysis and Portfolio Management. 10th Edition Australia: Thomson South-Western.

Republik Indonesia, Undang-Undang tentang Kepemudaan, UU No.40 Tahun 2009.

Robbins, S.P., & Judge, T.A. (2013). Organizational Behavior, Edition 15. New Jersey: Pearson Education.

Sadi, R., Asl, H. G., Rostami, M. R., Gholipour, A., & Gholipour, F. (2011). Behavioral finance: The explanation of investors’ personality and perceptual biases effects on financial decisions. International Journal of Economics and Finance, 3(5), 234–241.

Weber, E. U., & Figner, B. (2015). Personality and risk-taking. International Encyclopedia of The Social & Behavioral Sciences 2nd ed. (pp. 809-813). Amsterdam: Elsevier.

Wulandari, D., & Iramani, Rr. (2014). Studi experienced regret, risk tolerance, overconfidence dan risk perception pada pengambilan keputusan dosen ekonomi. Journal of Business & Banking. Vol. 4, No. 1, hlm. 55–66.

Zuckerman, M. (2014). Sensation Seeking: Beyond the Optimal Level of Arousal, 1st edition. Psychology Press.

DOI: http://dx.doi.org/10.25105/imar.v18i1.5385


  • There are currently no refbacks.

Copyright (c) 2019 Indonesian Management and Accounting Research

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.



Indonesian Management and Accounting Research
ISSN : 2442-9724 Online
ISSN : 1411-8858 Print

Published by
Lembaga Penerbit Fakultas Ekonomi dan Bisnis, Universitas Trisakti
(Faculty of Economics and Business, Trisakti University)
Gedung Hendriawan Sie, 3rd floor
Jalan Kyai Tapa No.1, Grogol
Jakarta Barat, Indonesia
Post Code : 11440

Email: imar.journal@trisakti.ac.id

url: http://www.trijurnal.lemlit.trisakti.ac.id/index.php/imar


Indonesian Management and Accounting Research Indexed by:





Creative Commons License
Indonesian Management and Accounting Research 
is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.