Abstract Book of the 9th International Conference on Management, Economics and Finance
Year: 2025
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Gambling vs. Investing: How national and personal factors shape financial risk-taking
Verena Karlsdottir, Már Wolfgang Mixa, Anna Maria Wojtynska
ABSTRACT:
This study contributes to the limited empirical research integrating socio-economic and individual perspectives in understanding financial risk-taking behaviour. It examines how national and personal characteristics shape individuals’ risk propensity, challenging the notion that risk-taking is a singular construct. The research highlights the importance of distinguishing between different dimensions of financial risk-taking, particularly gambling and investing, which are consistently defined in academic literature.
To explore these dynamics, Polish and Icelandic business students were surveyed using the DomainSpecific Risk-Taking (DOSPERT) scale. The findings reveal that gambling decisions are primarily influenced by individual factors, such as gender, while investment decisions are shaped by both personal and external influences, including nationality, economic conditions, and employment status. Notably, nationality significantly affects investment behaviour but not gambling tendencies, with Polish students exhibiting greater risk aversion in investment decisions.
These results underscore the need for further research into the complex interactions between national contexts, socio-economic environments, and individual financial decision-making. Understanding these relationships can inform financial education and policy development in diverse cultural settings.
Keywords: gambling, investing, risk-taking, behavioural finance, nationality