The Determination of The Factors Affecting The Perception of University Students Regarding Financial Risks: An Example of Pamukkale University

Abstract

There are several factors that affect risk taking decisions of investors. Leading among those factors are demographic characteristics of investors. Preceding studies have shown that variables as age, sex, income, employment etc. have effects on financial risk perception. In this study, 327 students enrolled in various departments of Faculty of Economics and Administrative Sciences, Pamukkale University were surveyed. Data acquired from the surveys was applied both logistical regression and non-parametric tests to determine variables that affect financial risk perception. According to the results acquired from logistical regression analysis effect of the sex variable on financial risk perception was found to be statistically significant, revealing that males are more eager to take risks when compared to females. From the results of non-parametric test results it was understood that total household income, in addition to sex, has a significant effect on financial risk tolerance score and subjects are more ready to take risk as their household income increases.