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Paper info: Business networks' influence on financial risk tolerance attitudes

Title


Business networks' influence on financial risk tolerance attitudes

Authors


Kylie Gilbey,
Sharon Purchase
University of Western Australia
Australia
Sharon Purchase and Raymond da Silva Rosa

Place of Publication


The paper was published at the 35th IMP-conference in Paris, France in 2019.

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Abstract


Speculative capital markets are characterised by actors possessing specific industry sector knowledge and higher financial risk tolerances, impacting individual and collective risk-taking behaviours and perceptions when making investment decisions, risk assessments and portfolio choices. However, there is limited research on the influence of an actor’s collective interactions and relationships within high risk speculative markets, or the contagion effects of informal information sources such as reputation, trust and knowledge of actors on establishment of investors financial risk tolerances impacting access to capital raising. We use the IMP Group business network framework to describe actor’s activities and interactions within business networks to support a common understanding through trust, reputation and knowledge of actors and ultimately, mutually beneficial cooperative advantages gained through access to business networks. Our research objective seeks deeper insights into the influence of business networks on actor’s financial risk tolerances and why some business networks might be perceived as sought after for their apparent advantages when seeking to access speculative capital raising.