The effect of an exogenous shock on financial risk perception.
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2022-07-20
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en
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This thesis examines the effect of an exogenous shock on financial risk perception. Risk perception has changed since the start of the Covid-19 crisis, so it is necessary to understand the risk that came along such an exogenous shock. However, risk perception can be influenced by many factors, such as age, gender, country of residence, educational level or occupancy for instance. For that reason, this thesis examines the relationship between the inclusion or exclusion of an exogenous shock while considering those demographical factors which can characterize a person’s beliefs and feelings. We aim to find the relationship between the introduction of an exogenous shock on Dutch individuals risk perception by performing experimental research on 311 Dutch individuals, where we conduct graphical and empirical analyzes, ranging from risk attitude to investment decisions. Hence, the results show a significant positive relationship between the introduction of an exogenous shock and operational risk perception and a negative relationship when considering liquidity risk perception. Therefore, we found evidence that Dutch individual’s operational risk perception increases when facing an exogenous shock while their liquidity risk perception decreases. And finally, a robustness test has been conducted which provided similar results, so our findings can be considered as robust.
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Faculteit der Managementwetenschappen