Financial Risk Tolerance: a Cultural Comparison - Exploring Risk Tolerance Scores of Singaporeans and Finns

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Journal Title

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Volume Title

School of Business | Bachelor's thesis

Date

2018

Department

Major/Subject

Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

72

Series

Abstract

Objectives The main objectives of this study were to 1. Explore the risk tolerance of Singaporean college students, 2. Explore the risk tolerance of Finnish college students, 3. Gauge if there are differences in the risk tolerance between the countries, 4. Explore the risk tolerance of females, 5. Explore the risk tolerance of males and 6. Gauge if there are differences in the risk tolerance between the genders. Summary The risk tolerance was researched by using a questionnaire developed by Grable and Lytton and combining the answers for a total score. The sample of this study consisted of Finnish and Singaporean university students. The findings conclude that there were no significant differences between the financial risk tolerance of Finns and Singaporeans. However, there were significant differences between females and males. Conclusions The findings can be used for, example given, the customization of investment portfolios for individuals from different countries. Additionally, the fact that there are significant differences between females and males can be used to further customize investment advice for each gender.

Description

Thesis advisor

Stepanov, Roman

Keywords

financial risk tolerance, risk profile, risk aversion, Singapore, Finland, culture, risk tolerance, survey, investment

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