Analysis of Individual Factors That Affect Investment Risk Preference of Individual Investors in Turkey

Abstract

Investors' risk preference is influential on the level of expected return per risk unit. In this case, the identification of the individual factors that affect the investors’ risk preferences is the most important necessity. In this study, a survey study was conducted with 380 people selected according to the random sampling method, in order to determine individual factors expected to affect individuals' risk preferences. Individual investors’ age, gender, marital status, child ownership, salary, wealth, education level were taken as an independent variable, and Binary Logistic Regression analysis was used. As a result of the study, a positive relationship with dependent variable was found between salary and wealth, and other independent variables had a negative relationship with dependent variable.