Exploration of Risk taking behaviors for Financial decision making in Malaysia

Abstract

We used and evaluated a simple real payoff choice investment alternatives to measure risk taking behavior of Malaysian youth and also applied this measure to examine differences in risk taking behavior of male, female, younger and older adult university students. Participants chose which of ten 50/50 chance to win or loss alternative they wish to choose. We found significant ethnic difference when Malay and Chinese were placed in-groups, Chinese showed a stronger pro-risk position than Malay. While no significant difference was found between Indian and Chinese. However, overall there was a significant gender difference in investment risk taking behavior. Females turned out in a stronger pro-risk position than males. In terms of choosing investment alternatives, there was a significant difference between age groups, such that younger adults were relatively more risk taker than older adults.