Perceived Risk as a Moderator on the Relationship Between Risk Avoidance, Uncertainty Avoidance and Investment Intentions of Individual Investors
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This study aims to advance theoretical knowledge on investment intentions of individual investors from the perspective of behavioural finance. Based on literature review, it is found that risk avoidance, uncertainty avoidance and perceived risk significantly influence the investment intentions of individuals. However, studies on behavioural finance have been unable to provide evidence on the moderating effect of perceived risk on the relationship between risk avoidance, uncertainty avoidance and investment intentions of individual investors. In other words, the role of perceived risk in strengthening or weakening the investment intentions has not been discussed by earlier researchers in the field of behavioural finance. This study fills the identified gap by proposing the moderating effect of perceived risk on the relationship between risk avoidance, uncertainty avoidance and investment intentions of individual investors. This study provides theoretical justification for the moderating role of perceived risk and future research directions to empirically examine the proposed framework.
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