Accessibility navigation

People are people: a comparative analysis of risk attitudes across Europe

Brooks, C. ORCID: and Williams, L. (2023) People are people: a comparative analysis of risk attitudes across Europe. International Journal of Finance & Economics. ISSN 1099-1158

Text (Open Access) - Published Version
· Available under License Creative Commons Attribution.
· Please see our End User Agreement before downloading.


It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing.

To link to this item DOI: 10.1002/ijfe.2837


In this paper, we conduct a detailed examination of the determinants of attitudes to financial risk among retail investors in six European countries (Belgium, France, Germany, Italy, Spain and the United Kingdom). We find that respondents from the United Kingdom and Belgium are the most risk tolerant while those from Spain are the least. We observe remarkable similarities in the distributions of risk tolerance across countries despite cultural differences and considerable variations in the extent to which risky investing is undertaken as a routine part of financial planning. We further show that country effects in the cross-sectional variation of attitude to risk scores are swamped by the impacts of gender, salary and wealth, while financial knowledge and prior investment experience are much more important still. Our results have implications for regulators and those who wish to encourage European investors to consider going beyond bank savings and guaranteed products to more prevalent stock market investing in an era of negative real interest rates.

Item Type:Article
Divisions:Henley Business School > ICMA Centre
ID Code:112370
Uncontrolled Keywords:Economics and Econometrics, Finance, Accounting


Downloads per month over past year

University Staff: Request a correction | Centaur Editors: Update this record

Page navigation