Impact of Financial Risk Tolerance on Reinvestment Intention and Investor’s Financial Well-Being: A Narcissistic Personality and Perceived Financial Transparency Approach

Abstract

This study investigates the impact of monetary gamble tolerance on investment intentions among people, emphasizing the job of monetary information and personality traits. Utilizing a sample of 284 money students, we employed multinomial logistic regression analysis to explore what monetary information means for risk tolerance and investment choices. Our discoveries uncover that people characterized by elevated degrees of extraversion, suitability, openness to experience, and conscientiousness are more disposed to invest, with monetary gamble tolerance significantly mediating these relationships. Specifically, monetary gamble tolerance completely mediates the connection between neuroticism and long haul investment intentions, highlighting the psychological elements of investment conduct. Additionally, monetary information arose as a significant factor impacting short-term and long haul investment intentions, though it showed limited moderating effects between risk tolerance and investment purpose. These insights highlight the importance of improving monetary literacy and understanding personality traits to foster more educated investment choices. The implications of this research extend to monetary supervisors, institutions, and policymakers, emphasizing the need to promote monetary information and chance tolerance as pivotal components in empowering people to take part in investment activities.