Chong, Ming Luan and Eng, Shu Pei and Wong, Evelyn Carmen (2020) Risk preference and financial decision-making evidence on household asset ownership on Indonesia. Final Year Project, UTAR.
Abstract
This study aims to examine the effect of risk preference on financial decision making in household assets in Indonesia. We used risk preference: risk-averse and risk-seeking as our independent variable. We measure our independent variable in dummy variables to investigate the effect on financial decision making in household assets in Indonesia. Cross sectional data from IFLS-5 for year 2014 is being used in this study, which contains 9786 sample size. We employed potential outcome framework to form our regression model, and employed CIA to eliminate the selection bias in our model to ensure our results is unbiased. The results show that risk preference has significant relationship with some of our household asset ownership that policymakers can make improvement on their policy to improve economy based on the results. This research provided contribution to the society such as policymakers, financial analyst, and the investors.
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