Record Details

The Influence of Financial Literacy, Risk Aversion and Expectations on Retirement Planning and Portfolio Allocation in Malaysia

Gadjah Mada International Journal of Business

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Field Value
 
Title The Influence of Financial Literacy, Risk Aversion and Expectations on Retirement Planning and Portfolio Allocation in Malaysia
 
Creator Mahdzan, Nurul Shahnaz
Mohd-Any, Amrul Asraf
Chan, Mun-Kit
 
Subject Business, Management
Retirement planning, portfolio allocation, financial literacy, risk aversion, expectations
M1, M5, I3
 
Description The two objectives of this paper are to examine the effect of financial literacy, risk aversion and expectations on retirement planning; and, to investigate the effect of these antecedents on the retirement portfolio allocation. Data was collected via a self-administered questionnaire from a sample of 270 working individuals in Kuala Lumpur, Malaysia. Logistic and ordered probit regressions were employed to analyse the first and second objective, respectively.  The results from the logistic regression indicate that future expectations significantly influence the probability of planning for retirement. Meanwhile, individuals with higher financial literacy and lower risk aversion are more likely to hold risky assets in their retirement portfolios. Subsequently, two-sample t-test and one-way ANOVA tests were conducted to further examine the differences in financial literacy, risk aversion and expectations, across demographic subgroups. The study contributes to the literature by holistically incorporating the behavioural aspects that affect retirement planning and by exploring an uncharted issue of retirement planning—namely, the retirement portfolio allocation.
 
Publisher Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
 
Contributor Ministry of Higher Education
 
Date 2017-12-22
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journal.ugm.ac.id/gamaijb/article/view/24441
10.22146/gamaijb.24441
 
Source Gadjah Mada International Journal of Business; Vol 19, No 3 (2017): September-December; 267-288
2338-7238
1411-1128
 
Language eng
 
Relation http://journal.ugm.ac.id/gamaijb/article/view/24441/19146
http://journal.ugm.ac.id/gamaijb/article/downloadSuppFile/24441/2508
http://journal.ugm.ac.id/gamaijb/article/downloadSuppFile/24441/2679
http://journal.ugm.ac.id/gamaijb/article/downloadSuppFile/24441/2680
 
Rights Copyright (c) 2017 Gadjah Mada International Journal of Business
http://creativecommons.org/licenses/by-sa/4.0