Investing in stocks: The influence of financial risk attitude and values-related money and stock market attitudes

This study examined the influence of financial risk attitude, money attitudes (achievement, power, obsession, budget), negative ethical stance toward the stock market, income, and gender on willingness to invest in stocks. Data were collected from a representative mail survey conducted in Switzerland (N = 1569). Structural equation modeling procedures were used to test the regression model. In a first step, the model was explored in an initial random sample and cross-validated in an additional random sample. In a second step, multi-group analyses were carried out across the following four groups: (1) men who have an investment account (n = 392), (2) women who have an investment account (n = 213), (3) men who do not have an investment account (n = 466), and (4) women who do not have an investment account (n = 421). The results show that the measurement models of the latent variables across groups were partially invariant. In all four groups, financial risk attitude was a significant positive predictor, and viewing the stock market as unethical a significant negative predictor, of willingness to invest in stocks. Income was a significant positive predictor for men with an investment account, and the money attitude budget was a significant negative predictor for men and women who do not have an investment account. In contrast, achievement had no significant influence on willingness to invest in stocks in any group.