ASSOCIATION OF DEMOGRAPHIC AND BEHAVIORAL CHARACTERISTICS ON FINANCIAL DECISION MAKING

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Abstract

Managerial Risk acceptance criteria are affected by several factors. The study focuses on demographic and behavioral factors that plays their role in altering their decision making process. Questionnaires were distributed for collecting response of different professionals holding managerial positions encompassing Demographic Factors i.e. gender, age, marital Status and education, Behavioral factors i.e. Excessive Optimism, Over Confidence and Emotional Intelligence on risk perception. Reliability of the questionnaire is assessed through Cron Bach Alpha and to evaluate technical aspects of all variables, Linear regression and General Linear Univariate model are used. It is found that the variables including both, behavioral and demographic aspects are significantly associated with risk acceptance.

Keywords: Gender, Marital Status, Education Level, Excessive Optimism, Overconfidence, Emotional Intelligence, Linear Regression, General Linear Univariate Model, Cron Bach Alpha

Received: 18.04.2017

Accepted: 19.09.2017

How to cite this paper: Shahid, S., Ahmad, B., & Badar, M. (2017). Association of demographic and behavioral characteristics on financial decision making. Corporate Governance and Sustainability Review, 1(2), 20-29. https://doi.org/10.22495/cgsrv1i2p3