Evaluation of demographic variables and their impact on financial risk tolerance among women

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Abstract

This empirical research examined variations in financial risk tolerance (FRT) among Saudi Arabian women based on demographics such as age, education, work experience, monthly income, occupation, place of residence, and region. It explored the relationship between these characteristics and women investors’ risk tolerance (RT) in investment decisions (Hermansson & Jonsson, 2021). Limited studies have addressed women investors’ demographic characteristics and risk perceptions in Saudi Arabia. This study identified key factors influencing different categories of women investors, collecting data from 607 female participants and using the FRT scale to quantitatively assess financial risk dimensions (Hemrajani et al., 2023). Online questionnaires were distributed via Google Forms. A multinomial logistic regression model was employed. The findings indicated a significant positive influence of certain demographics on FRT. Moderate risk scores notably impacted marital status, employment, and residence. Age, marital status, and educational attainment significantly influenced above-average risk scores. High-risk scores were significantly associated with age, marital status, and educational attainment. Employment status, work experience, geographic area, and residential location were also significantly related to FRT scores. The study highlighted differences in FRT based on geographical location, offering valuable insights for policymakers and investors to advance Saudi Arabia’s financial sector.

Keywords: Financial Risk, Multinomial Logistic Regression, Demographic Factors, Investment Decisions, Financial Risk Tolerance, Saudi Arabia

Authors’ individual contribution: Conceptualization — Y.A.; Methodology — R.B.; Software — R.B.; Validation — R.B.; Formal Analysis — R.B.; Investigation — R.B.; Resources — Y.A.; Data Curation — Y.A.; Writing — Original Draft — R.B.; Writing – Review & Editing — Y.A.; Visualization — R.B.; Supervision — Y.A.; Project Administration —Y.A.; Funding Acquisition — Y.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G11, G41, G51, G53

Received: 14.12.2024
Revised: 28.03.2025; 25.06.2025
Accepted: 14.07.2025
Published online: 16.07.2025

How to cite this paper: Ansari, Y., & Bansal, R. (2025). Evaluation of demographic variables and their impact on financial risk tolerance among women. Risk Governance & Control: Financial Markets & Institutions, 15(3), 64–83. https://doi.org/10.22495/rgcv15i3p5