ABSTRACT

A STUDY ON THE HOUSEHOLD'S INVESTMENT BEHAVIOR BY RISK ATTITUDE

Eun-joo, Chung(Dept. of Home Management, The Graduate School of Ewha Womans University)

This study attempts to provide a theoritical framework which synthesizes risk attitude, type of investment management and investment behavior and to provide the specific strategy of investment according to analysis several variabls which have effect upon the investment behabior.

The research problems are as follows:

1. Are there significant differences in the risk attitude according to several variables? And how much are the relative effects of several variables on the risk attitude?

2. Are there siginificant differences in the type of investment management according to several variables? And how much are the relative effects of several variables on the type of investment management?

3. Are there significant differences in the ratio of risky asset possession? And how much are the relative effects of several variables on the ratio of risky asset possession?

4. How strong are the causal relation between the ratio of risky asset possession and several variables?

For this purpose, theoretical framework was developed by literature review and it was applied to an empirical test by statistical methods.

The data was collected through the questionnaire whose were 403 households in Seoul. The data were analyzed by various statistical methods such as Frequency, Percentile, ANOVA, F-test. T-tst. Pearson's Correlation Analysis, Crosstabulation, Mutiple Regression Analysis, Path Analyis.

The results of this research are as follows:

1. On the economic risk, risk averts were more than risk seekers. Risk attitude were shown significant differences according to the variables such as age, sex, education, income, debt/asset ratio. As the result of analysis of relative effects, the most influncial variable was income and the next were age, sex in order.

2. The type of investment management was somewhat morphostatic and had the significant differences according to the variables such as age, education, occupation, income, total asset, debt/asset ratio, achvievement motivation, risk attitude. The most influencial variable was risk attitude and the next were income, achievement motivation, age in order.

3. For the analysis of the ratio of risky asset possession, consideration of investment, recognition of return and safety, investment preference were investigated. As the result, the safety was reconiged the most significantly by households and real estate was the most prefered. Also the returns of real estate and the safety of savings was the higest. The safety was considered significantly by risk seeker and returns was considered significantly by risk averter.

4. The ratio of risky asset possession had significant differences assording to the variables such as age, education, occupation, housing ownership, income, total asset, debt/asset ratio, achievement motivation, risk attitude, type of investment management, Among several variables affecting the ratio of risky asset possession total asset had the highest effect and the next were risk attitude, type of investment management and education in order.

5. Among several variables affecting the ratio of risky asset possession risk attitude, education, type of investment management, debt/asset ratio, achievement motivation had direct effect on the ratio of risky asset possession. Besides age had indirect effect on it through risk attitude and age, income, achievement motivation, risk attitude had indirect effect on it through the type of investment management.

The results of this study can be attributed to provide the investment strategy ofr improving level of household's financial well-being. Also it shows that the relation between input, throughput and output can bd applied to household's investment behavior and the concept of risk or risk attitude can be applied to other fields except household investment.