How institutional Environments Shape Retail Investors' Risk Preferences and Participation: A Transatlantic Comparison
2026 (engelsk)Independent thesis Advanced level (degree of Master (Two Years)), 20 poäng / 30 hp
Oppgave
Abstract [en]
This thesis explores how institutional environments influence retail investors’ participationand risk preferences in the global financial markets. The study focuses on institutional theoryand is supported through behavioral finance literature. It investigates the influence of theinstitutional pillars (regulative, normative, and cultural-cognitive) on retail investors inSweden and the United States. It centers on institutional trust, participation levels, riskpreferences, and investment intensity.A quantitative cross-sectional survey was run among retail investors in Sweden and theUnited States. Statistical rigor was maintained using Cronbach’s alpha, Welch’s t-tests,Mann-Whitney U tests, Spearman’s rank correlation, ordinal regression analysis, andHierarchical OLS regression. Results indicated no statistically significant differences in riskpreferences or participation rates between the nations. Swedish respondents indicatedsignificantly higher levels of institutional trust and investment intensity. Institutional trust wasnot associated with participation, but risk preference showed a statistically significantrelationship with market participation.The results suggest that institutional differences influence investment intensity more stronglythan retail investors risk preferences or general market participation. This thesis contributes tothe international business and behavioral finance literature by applying institutional theory toindividual retail investors in a transatlantic context.
sted, utgiver, år, opplag, sider
2026. , s. 76
Emneord [en]
Institutional theory, retail investors, market participation, risk preference, institutional trust, behavioral finance, Sweden, United States.
HSV kategori
Identifikatorer
URN: urn:nbn:se:uu:diva-593523OAI: oai:DiVA.org:uu-593523DiVA, id: diva2:2083438
Fag / kurs
Business Studies
Utdanningsprogram
Master Programme in Business and Management
Veileder
Examiner
2026-07-032026-07-022026-07-03bibliografisk kontrollert