How institutional Environments Shape Retail Investors' Risk Preferences and Participation: A Transatlantic Comparison
2026 (Engelska) Självständigt arbete på avancerad nivå (masterexamen), 20 poäng / 30 hp
Studentuppsats (Examensarbete)
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.
Ort, förlag, år, upplaga, sidor 2026. , s. 76
Nyckelord [en]
Institutional theory, retail investors, market participation, risk preference, institutional trust, behavioral finance, Sweden, United States.
Nationell ämneskategori
Företagsekonomi
Identifikatorer URN: urn:nbn:se:uu:diva-593523 OAI: oai:DiVA.org:uu-593523 DiVA, id: diva2:2083438
Ämne / kurs Företagsekonomi
Utbildningsprogram Masterprogram i företagande och ledning
Handledare
Examinatorer
2026-07-032026-07-022026-07-03 Bibliografiskt granskad