THE IMPACTS OF PERCEIVED RISK AND RISK PROPENSITY ON FINANCIAL WELL-BEING: AN APPLICATION ON BANK EMPLOYEES

Year 2018, Volume: 5 Issue: 3, 328 - 338, 30.09.2018

İsmail Atabay Bayram Alamur Aysegul Yildirim Kutbay , Fatih Koc , Fatik Karakas

Abstract

Purpose- This study seeks
to determine the impact of perceived risk on risk propensity and the impact of
both variables on financial well-being.

Methodolgy- The questionnaire prepared by using
the Perceived Risk and Risk Propensity scales obtained from the study of Hunjra
et al. (2017) and the Financial Well Being adapted from the study of Norvilitis
et al. (2003) was applied to 679 employees in banks operating in Balıkesir
province and the results were analyzed and interpreted using SPSS 22 and AMOS
package programs.

Findings- It has been determined in the research
that the effect on the risk propensity of perceived risk is negative and
meaningful and the effect of perceived risk on the existing financial condition
and future financial situation expectancy dimensions of financial well-being
determined to be in significant. It has been determined that the effecweeeeet
of risk propensity on the existing financial condition and future financial
situation expectancy dimensions of financial well-being is negative and
meaningful. It has been also determined that the effect of the existing
financial condition dimension of financial well-being on the future financial
situation expectancy dimension of financial well-being positive and meaningful.

Conclusion- As a result of there search, it is determined
that individuals with high risk perception have a low risk propensity and those
with high risk propensity will not see themselves very well financially, the
expectation of the future financial situation of those who feel good
financially in the current situation is also positive.

Keywords

Perceived risk, risk propensity, financial well-being, banking sector employees

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