Explaining Investor Preferences

Previous research on investor preferences focused mainly on the relationship between socio-demographic variables and risk tolerance. This book extends the research in this area by focusing on three aspects of investor preferences: risk tolerance, time horizon, and estate intentions. The objective is to provide a more comprehensive model of investor preferences, including both psychological and attitudinal variables. The author addresses the following: Are socio-demographic variables sufficient to predict investor preferences? Is there a difference between males and females? How much additional variance is explained by including political ideology, positive psychology attitudes, and pro-social attitudes? Are these attitudinal variables simply additive or are they interactive? The book also provides financial advisers with a deeper understanding of the importance of psychological and attitudinal variables in determining investor behavior. In addition, it augments and expands stakeholder theory. The author brings the investor into the stakeholder model, enhancing the descriptive, explanatory, and predictive capabilities of stakeholder theory.