Welcome to the InfoSci Platform
An Integrated Model of Perceived Risk and Risk-Reducing Strategies in the Tunisian Stock Market: Risk-Behavior Model

An Integrated Model of Perceived Risk and Risk-Reducing Strategies in the Tunisian Stock Market: Risk-Behavior Model

Azza Béjaoui, Adel Karaa
Copyright: © 2016 |Pages: 44
ISBN13: 9781466698642|ISBN10: 1466698640|EISBN13: 9781466698659
DOI: 10.4018/978-1-4666-9864-2.ch014
Cite Chapter Cite Chapter

MLA

Béjaoui, Azza, and Adel Karaa. "An Integrated Model of Perceived Risk and Risk-Reducing Strategies in the Tunisian Stock Market: Risk-Behavior Model." Ethical and Social Perspectives on Global Business Interaction in Emerging Markets, edited by Minwir Al-Shammari and Hatem Masri, IGI Global, 2016, pp. 240-283. https://doi.org/10.4018/978-1-4666-9864-2.ch014

APA

Béjaoui, A. & Karaa, A. (2016). An Integrated Model of Perceived Risk and Risk-Reducing Strategies in the Tunisian Stock Market: Risk-Behavior Model. In M. Al-Shammari & H. Masri (Eds.), Ethical and Social Perspectives on Global Business Interaction in Emerging Markets (pp. 240-283). IGI Global. https://doi.org/10.4018/978-1-4666-9864-2.ch014

Chicago

Béjaoui, Azza, and Adel Karaa. "An Integrated Model of Perceived Risk and Risk-Reducing Strategies in the Tunisian Stock Market: Risk-Behavior Model." In Ethical and Social Perspectives on Global Business Interaction in Emerging Markets, edited by Minwir Al-Shammari and Hatem Masri, 240-283. Hershey, PA: IGI Global, 2016. https://doi.org/10.4018/978-1-4666-9864-2.ch014

Export Reference

Mendeley
Favorite

Abstract

This chapter examines the antecedents and consequences of the perceived risk of investors towards the Tunisian stock market. A questionnaire was developed and distributed to 411 individual investors chosen by 24 brokerage firms. Using the structural equation model, we operationalize the risk following the psychometric paradigm according to subjective variables (i.e. familiarity and controllability). Results prove that controllability is a significant factor in the formation of perceived risk. We also show that several factors related to the investor, the listed companies and to the stock market can influence the perceived risk by the investor towards the Tunisian stock market. Similarly, we find that perceived risk leads to intensive information search, good performance and a strong reinvestment intention. These results attest the importance of the risk perception in the decision-making process.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.