IMPACT OF FINANCIAL SELF-EFFICACY ON INVESTORS RISK ATTITUDE

Abstract

This study examines the relationship between financial self-efficacy and investors risk attitudes. Understanding this link has practical implications for financial education and investment strategies. While demographic factors play a role in shaping risk attitudes, financial self-efficacy is a significant internal driver of investor behavior. This paper examines the impact of financial self-efficacy on investors risk attitude. The results show that investors risk attitude is influenced by their financial self-efficacy, and investors with higher financial self-efficacy levels are more risk-seeking.