Faculty Publications
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Publications by NITK Faculty
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Item Optimism and Self-Control: Complementary Predictors of Financial Risk-Taking Propensity Among Working Adults(Associated Management Consultants Pvt. Ltd., 2023) Rodrigues, C.G.; Gopalakrishna, B.V.Purpose: The article aimed to investigate the complementary strength of two behavioral traits, namely, optimism and self-control, on the financial risk-taking propensity of working adults in India. In addition, the moderating effect of gender on the relationship of optimism and self-control with financial risk-taking propensity was examined. Methodology: The study adopted a cross-sectional-based survey approach with a sample consisting of 522 individuals of age 18 and above with diverse demographic characteristics. Purposive and convenience sampling techniques were employed for collecting data through a self-administered questionnaire. Structural equation modeling (SEM) was used to test the study’s hypotheses using the IBM AMOS software. Findings: The results revealed a positive association between optimism and financial risk-taking, while self-control showed a negative association. Further, the relationship between optimism and risk-taking propensity was moderated by gender, and this relationship was more pronounced among females. The study also revealed a contradictory finding which showed greater levels of optimism among females compared to males as opposed to prior research findings. Practical Implications: The study finds its importance among academicians who want to explore the complementary strengths of optimism and self-control in various other decision-making contexts. Financial service providers can look into the behavioral traits of optimism and self-control of their clients while assisting them in making financial decisions. Originality: The present study is unique as optimism and self-control as complementary predictors of the financial risk-taking propensity of working individuals have not been explored in the Indian context. © 2023, Associated Management Consultants Pvt. Ltd.. All rights reserved.Item Financial risk tolerance of individuals from the lens of big five personality traits – a multigenerational perspective(Emerald Publishing, 2024) Rodrigues, C.G.; Gopalakrishna, B.V.Purpose: This study aims to analyse the impact of the big five personality traits on the financial risk tolerance of individuals. Furthermore, it also examines the differences in personality traits and financial risk tolerance across four generations: baby boomers, Generation X, millennials and Generation Z. Design/methodology/approach: The data constituted 869 responses from Indian individuals, collected using a self-administered structured questionnaire using a convenience sampling technique. Findings: Structural equation modelling analysis showed that openness to experience, extraversion and neuroticism had a significant impact on financial risk tolerance. Multivariate analysis revealed the role of specific personality traits in predicting the financial risk tolerance of generational cohorts. Mean difference showed that millennials and Generation Z had the greatest risk tolerance, whereas the tolerance levels were lower for Generation X and baby boomers. Research limitations/implications: This research provides insights into the role of personality on financial risk-taking among generational cohorts in India. Thus, these results cannot be generalised for other risk-taking domains or outside the Indian context. Originality/value: This study’s results align with the pulse rate hypothesis of generational theory and contribute to the growing field of behavioural economics and finance. It provides a perspective of the emerging economy of India, where behavioural finance studies are still at a nascent stage. © 2023, Emerald Publishing Limited.Item Financial literacy–a regulator of intended investment behaviour: analysing the hypothetical portfolio composition(Emerald Publishing, 2024) Rodrigues, C.G.; Gopalakrishna, B.V.Purpose: The investment behaviour of individuals has been a major area of interest for several researchers and policymakers due to its great impact on the economy. This study aimed to assess the investment behaviour of individuals in light of their risk appetite and how financial literacy regulates this relationship. Design/methodology/approach: A self-administered structured questionnaire was used to collect responses from individuals using purposive and convenience sampling techniques. Individuals were presented with 16 investment avenues widely offered by the Indian financial market to choose from to construct a hypothetical portfolio. The association between risk appetite, financial literacy and the composition of the hypothetical portfolio was analysed using a gologit model. Findings: Increased risk appetite increased the probability of respondents creating a portfolio with a greater proportion of risky assets and less diversification. Lower levels of financial literacy pointed towards portfolios with traditional and low-risk avenues. The results also revealed a significant moderating impact of financial literacy on risk appetite and the creation of the type of a hypothetical portfolio. Research limitations/implications: Even though the intended behaviour is a close estimate of actual behaviour, there is a possibility of deviation that cannot be ignored. Originality/value: The present study provides insights into how individuals make portfolio choices by incorporating risk appetite and diversification factors whilst making investment decisions, thereby expanding the literature from an emerging economy perspective. The role of financial literacy as a moderator has not been studied in the domain of hypothetical portfolio creation in India, which has been empirically explored in the current study. © 2023, Emerald Publishing Limited.