The Impact of Risk Perception, Risk Preference, and Financial Literacy on Chinese Internet Investment Behavior
DOI:
https://doi.org/10.53797/ujssh.v3i2.24.2024Keywords:
Internet Investment Behavior, Risk Perception, Risk Preference, Financial Literacy, Chinese InvestorsAbstract
This study explores the impact of risk perception, risk preference, and financial literacy on Chinese internet investment behavior. With the rapid growth of digital finance in China, internet investment has become a significant avenue for individuals to engage with various financial products and services. Understanding how these factors influence investment decisions is crucial for promoting rational investment behavior and enhancing financial literacy among investors. The research adopts a quantitative approach, utilizing data collected through questionnaires distributed to Chinese investors. The study aims to examine the relationships between these key variables and how they shape internet investment behaviors. Descriptive statistics were used to analyze the collected data, followed by regression analysis to determine the significance of each factor. The findings provide valuable insights for investors, financial institutions, and policymakers, helping to improve risk management strategies and support the sustainable development of China's internet finance sector.
References
Adil, M., Singh, Y., & Ansari, M. S. (2022). How financial literacy moderate the association between behaviour biases and investment decision? Asian Journal of Accounting Research, 7(1), 17-30.
Ahmed, Z., Rasool, S., Saleem, Q., Khan, M. A., & Kanwal, S. (2022). Mediating role of risk perception between behavioral biases and investor’s investment decisions. Sage Open, 12(2), 21582440221097394.
Almansour, B. Y., Elkrghli, S., & Almansour, A. Y. (2023). Behavioral finance factors and investment decisions: A mediating role of risk perception. Cogent Economics & Finance, 11(2), 2239032.
Bayar, Y., Sezgin, H. F., Öztürk, Ö. F., & Şaşmaz, M. Ü. (2020). Financial literacy and financial risk tolerance of individual investors: Multinomial logistic regression approach. Sage Open, 10(3), 2158244020945717.
Chan, E. Y. Y., Huang, Z., Lo, E. S. K., Hung, K. K. C., Wong, E. L. Y., & Wong, S. Y. S. (2020). Sociodemographic predictors of health risk perception, attitude and behavior practices associated with health-emergency disaster risk management for biological hazards: The case of COVID-19 pandemic in Hong Kong, SAR China. International Journal of Environmental Research and Public Health, 17(11), 3869.
Darker, C., & Whittaker, A. C. (2020). Risk perception. In Encyclopedia of behavioral medicine (pp. 1925-1927). Cham: Springer International Publishing.
Harahap, S., Thoyib, A., Sumiati, S., & Djazuli, A. (2022). The impact of financial literacy on retirement planning with serial mediation of financial risk tolerance and saving behavior: Evidence of medium entrepreneurs in Indonesia. International Journal of Financial Studies, 10(3), 66.
Holzmeister, F., Huber, J., Kirchler, M., Lindner, F., Weitzel, U., & Zeisberger, S. (2020). What drives risk perception? A global survey with financial professionals and laypeople. Management Science, 66(9), 3977-4002.
Kawamura, T., Mori, T., Motonishi, T., & Ogawa, K. (2021). Is financial literacy dangerous? Financial literacy, behavioral factors, and financial choices of households. Journal of the Japanese and International Economies, 60, 101131.
Korkmaz, A. G., Yin, Z., Yue, P., & Zhou, H. (2021). Does financial literacy alleviate risk attitude and risk behavior inconsistency? International Review of Economics & Finance, 74, 293-310.
Li, Z., Sha, Y., Song, X., Yang, K., Zhao, K., Jiang, Z., & Zhang, Q. (2020). Impact of risk perception on customer purchase behavior: A meta-analysis. Journal of Business & Industrial Marketing, 35(1), 76-96.
Liu, B., Wang, J., Chan, K. C., & Fung, A. (2021). The impact of entrepreneurs’ financial literacy on innovation within small and medium-sized enterprises. International Small Business Journal, 39(3), 228-246.
Liu, L., & Zhang, H. (2021). Financial literacy, self-efficacy and risky credit behavior among college students: Evidence from online consumer credit. Journal of Behavioral and Experimental Finance, 32, 100569.
Pan, D., He, M., & Kong, F. (2020). Risk attitude, risk perception, and farmers’ pesticide application behavior in China: A moderation and mediation model. Journal of Cleaner Production, 276, 124241.
Siegrist, M., & Árvai, J. (2020). Risk perception: Reflections on 40 years of research. Risk Analysis, 40(S1), 2191-2206.
Sjöberg, L. (2020). Explaining risk perception: An empirical evaluation of cultural theory. In Risk management (pp. 127-144). Routledge.
Sulistianingsih, H., & Santi, F. (2023). Does SME’s financing decisions follow pecking order pattern? The role of financial literacy, risk preference, and home bias in SME financing decisions. Cogent Business & Management, 10(1), 2174477.
Wallace, G. K. (2022). Portfolio managers’ recollected perceptions of risk perception and risk preference after experiencing the Puna eruption. Capella University.
Wang, F., Zhang, R., Ahmed, F., & Muhammed Shah, S. M. (2022). Impact of investment behaviour on financial markets during COVID-19: A case of UK. Economic Research-Ekonomska Istraživanja, 35(1), 2273-2291.
Weixiang, S., Qamruzzaman, M., Rui, W., & Kler, R. (2022). An empirical assessment of financial literacy and behavioral biases on investment decision: Fresh evidence from small investor perception. Frontiers in Psychology, 13, 977444.
Xu, D., Zhuang, L., Deng, X., Qing, C., & Yong, Z. (2020). Media exposure, disaster experience, and risk perception of rural households in earthquake-stricken areas: Evidence from rural China. International Journal of Environmental Research and Public Health, 17(9), 3246.
Zhu, H., & Deng, F. (2020). How to influence rural tourism intention by risk knowledge during COVID-19 containment in China: Mediating role of risk perception and attitude. International Journal of Environmental Research and Public Health, 17(10), 3514.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Jia Zhibin, Ghosh Abhijit, Liu Meiqian
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
