Role of Financial Risk Tolerance as a Mediator among Gender, Marital Status and Financial Behaviour

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DOI: https://doi.org/10.5281/zenodo.19469143

Srishti Gupta and Navdeep Aggarwal (School of Business Studies, Punjab Agricultural University, Ludhiana, Punjab)

The study was designed to determine whether financial risk tolerance mediates the association between gender, marital status and financial management behaviour of urban and rural area residents. A questionnaire was used to collect data from urban and rural residents of Ludhiana district (N=400). Socio-demographic variables such as age, education, gender, marital status and annual income were covered along with financial risk tolerance and financial behaviour. The mediation test was carried on according to the guidelines given by Zhao et al. (2010). In urban area risk tolerance was fully mediated between gender and financial behaviour and partially mediated between marital status and financial behaviour. In rural areas, no mediation of financial risk tolerance was observed between gender, marital status and financial behaviour. The need for financial education was felt to spread awareness among rural residents. So, the financial behaviour of rural residents can be improved. These findings are useful for literature that investigates behavioural finance by using pragmatic evidence from India.