Investing the influence of social economic status and risk willingness on the use of investing apps: an interaction effect analysis
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2023-07-11
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en
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This thesis focuses on whether there is an interaction effect between social economic status, risk preferences and the usage of investing applications. The rapid growth of investing apps has increased accessibility to investing for individuals across different socio-economic statuses (SES). If individuals with lower SES, who would be more risk-seeking, are more likely to invest, this could lead to finding the result that protective measures should be added to the apps. Therefore, the research question of this thesis is: How do SES and risk preferences interact and determine whether individuals make use of investing apps?
Investing apps offer benefits e.g., low costs, easy accessibility, and speed of execution, but they also have drawbacks. The advice given on the apps is impersonal and perhaps does not align with individuals' risk preferences. Moreover, users must exercise self-control and critical thinking skills when making investment decisions.
A survey was conducted involving 148 participants to explore the interaction effect between SES, risk preferences, and investing app usage. Four clusters of regressions were created as SES and risk preferences were both measured in two ways. The analyses of the four clusters revealed the interaction effect of SES and risk preferences on investing app usage is not significant.
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Faculteit der Managementwetenschappen