The Demographical Factors Role in Explanation of Retail Investors’ Financial Risk-Tolerance and Their Risk-Taking Behavior

Among the most important concerns of policy makers in monetary and financial markets and particularly in stock exchange are supervising how to make decision and what are the influencing variables on decision making by the activists of this field. The general aim of the current study is to investigate the role of demographic factors in explaining the risk tolerance of real investors and their risk-taking behavior. The main question of this research is to identify the impact of demographic factors such as: gender, age, marital status, education, job status and income on the level of risk tolerance and risk-taking of real investors. The statistical population of the present study was real people who are active on the stock exchange. The sample size was 384 individuals. In addition to expert opinions, factor analysis was used to confirm validity and reliability. Finally, in order to demonstrate the validity of the research model findings, the fitting indexes of structural equation models were used by partial least squares method. The results of current study revealed that the level of risk tolerance and risk taking for men is more than women. In addition, age, education, job status and income have significant effect on level of risk tolerance and risk taking. The results also indicated that  marital status has no significant effect on risk tolerance and risk taking.