A structural equation model of financial risk tolerance in South Africa

Figures & data

Table

In most ways, my life is close to ideal

The conditions of my life are excellent

I am satisfied with my life

So far I have gotten the important things I want in my life

If I could live my life over I would change almost nothing

Figure 1. Demographic distribution of the sample.

Notes: Figure 1 indicates the structural relationship between the dependent variable risk tolerance and investor age, gender, risk-taking behaviour and perception and subjective life satisfaction.

Table 1. Standardised weights of investor risk tolerance

Constructs			Estimate	P-value
Risk tolerance	<—	Gender	0.153	***
	<—	Age	−0.123	***
	<—	Life satisfaction	0.071	0.019**
	<—	Social	0.237	***
	<—	Ethical	−0.062	0.313
	<—	Financial	0.112	0.007
	<—	Health and safety	−0.097	0.134
	<—	Recreational	0.052	0.245

Notes: Table 1 indicates the structural model, which indicates the influence of demographics, more specifically gender, age as well as other internal factors such as the subjective life satisfaction and risk-taking behaviour and perception domains (social, ethical, financial, health and safety as well as recreational) on investor risk tolerance. ***Significant at 0.01 level; **Significant at 0.05 level *Significant at 0.1 level

Figure 2. Structural model of investor risk tolerance, gender, age, life satisfaction risk-taking behaviour and perception.

Notes: Figure 2 indicates the structural relationship between the dependent variable risk tolerance and investor age, gender, risk-taking behaviour and perception and subjective life satisfaction.