116
APPENDIX
ANNEXURE A
Questionnaire
Dear Respondent,
You are requested to fill up the questionnaire, meant for Ph.D. Thesis entitled, “Impact of
psychological constructs on individual investor’s financial risk tolerance: A study of Indian
Capital Market” under the supervision of Prof. Shiv Kumar Sharma, Department of Management,
Faculty of Social Sciences, Dayalbagh Educational Institute, Dayalbagh, Agra.
The information as obtained will be used for academic purpose only and the responses will be
kept strictly confidential. Thank You for your time and patience.
Pragati Hemrajani
Department of Management
Faculty of Social Sciences
Dayalbagh Educational Institute
(Deemed University)
Dayalbagh, Agra
117
Want to improve your personal finances? Start by taking this 10 minutes’ questionnaire to get
an idea of your psychology and investment risk tolerance – one of the fundamental issues to
consider when planning your investment strategy, either alone or in consultation with a financial
services professional.
Choose the response that best describes you – there are no “right” or “wrong” answers.
SECTION I
1. Name (Optional): …………………………………………………………………………….
2. Gender:
Male Female
3. Age (in Years):
Less than or equal to 45 years Greater than 45 years
4. Education:
Professional Non-Professional
Others (Please Specify) ………………………………………………………………………..
5. Marital Status:
Married Unmarried
6. Occupation:
Salaried* Self-employed
* If salaried, your organization type:
Private Sector Public Sector
7. Annual Household Disposable Income (in lakhs):
Less than or equal to 10 Lakhs Greater than 10 Lakhs
8. How long have you been investing (in years)?
Less than or equal to 5 years Greater than 5 years
SECTION II
Read each statement below and decide how much strongly the statement applies to you.
Mark (√ ) yourself 1 to 5 on the basis of following guide;
1= Strongly Disagree, 2= Disagree, 3= Neither Agree nor Disagree, 4= Agree and 5=Strongly
Agree
Disagree
Disagree
Strongly
Strongly
Neutral
Agree
Agree
I have a good sense of why I have certain feelings
1 2 3 4 5
most of the time.
I have good understanding of my own emotions. 1 2 3 4 5
I really understand what I feel. 1 2 3 4 5
I always know whether or not I am happy. 1 2 3 4 5
118
I always know when I am being unreasonable. 1 2 3 4 5
Disagree
Disagree
Strongly
Strongly
Neutral
Agree
Agree
B
I always know my friends' emotions from their
1 2 3 4 5
behaviour.
I am a good observer of others' emotions. 1 2 3 4 5
I am sensitive to the feelings and emotions of
1 2 3 4 5
others.
I have good understanding of the emotions of
1 2 3 4 5
people around me.
I am aware of non-verbal messages that other
1 2 3 4 5
people’s send.
Disagree
Disagree
Strongly
Strongly
Neutral
Agree
Agree
C
I always set goals for myself and then try my best
1 2 3 4 5
to achieve them.
I always tell myself I am a competent person. 1 2 3 4 5
I am a self-motivating person. 1 2 3 4 5
I would always encourage myself even when I
1 2 3 4 5
feel low.
I expect good things to happen. 1 2 3 4 5
Disagree
Disagree
Strongly
Strongly
Neutral
Agree
Agree
D
I am able to control my temper so that I can
1 2 3 4 5
handle difficulties rationally.
I am quite capable of controlling my own
1 2 3 4 5
emotions.
I can always calm down quickly when I am very
1 2 3 4 5
angry.
I have good control over my own emotions. 1 2 3 4 5
I can let anger ‘go’ quickly so that it no longer
1 2 3 4 5
affects me.
SECTION III
Read each statement below and decide how much strongly the statement applies to you.
Mark (√ ) yourself 1 to 5 on the basis of following guide;
1= Strongly Disagree, 2= Disagree, 3= Neither Agree nor Disagree, 4= Agree and 5=Strongly
Agree
119
Disagree
Disagree
Strongly
Strongly
Neutral
Agree
Agree
A
When I feel bad, I will often do things I later
1 2 3 4 5
regret in order to make myself feel better now.
Sometimes when I feel bad, I can’t seem to stop
what I am doing even though it is making me feel 1 2 3 4 5
worse.
When I am upset I often act without thinking. 1 2 3 4 5
When I feel rejected, I will often say things that I
1 2 3 4 5
later regret.
It is hard for me to resist acting on my own
1 2 3 4 5
feelings.
Disagree
Disagree
Strongly
Strongly
Neutral
Agree
Agree
B
I generally like to see things through to the end. 1 2 3 4 5
Unfinished tasks really bother me. 1 2 3 4 5
I concentrate easily. 1 2 3 4 5
I tend to give up easily. 1 2 3 4 5
I am pretty good about pacing myself so as to get 1 2 3 4 5
things done on time.
Disagree
Disagree
Strongly
Strongly
Neutral
Agree
Agree
C
I have a reserved and cautious attitude towards
1 2 3 4 5
life.
I like to stop and think things over before I do
1 2 3 4 5
them.
I tend to value and follow a rational, "sensible"
1 2 3 4 5
approach to things.
Before I get into a new situation, I like to find out
1 2 3 4 5
what to expect from it.
Before making up my mind, I consider all the 1 2 3 4 5
advantages and disadvantages.
Disagree
Disagree
Strongly
Strongly
Neutral
Agree
Agree
When I am very happy, I tend to do things that
1 2 3 4 5
can cause me problem.
120
I tend to lose control when I am in a great mood. 1 2 3 4 5
Others are shocked or worried about the things I
1 2 3 4 5
do when I am feeling very excited.
I tend to act without thinking when I am really
1 2 3 4 5
excited.
When overjoyed I feel like I can’t stop myself 1 2 3 4 5
from being overboard.
SECTION IV
Read each statement below and decide how much strongly the statement applies to you.
Mark (√ ) yourself 1 to 5 on the basis of following guide;
1= Strongly Disagree, 2= Disagree, 3= Neither Agree nor Disagree, 4= Agree and 5=Strongly
Agree
Disagree
Disagree
Strongly
Strongly
Neutral
Agree
Agree
A
Investing is too difficult to understand. 1 2 3 4 5
I am more comfortable putting my money in a
1 2 3 4 5
bank account than in the stock market.
When I think of the word “risk” the term “loss”
1 2 3 4 5
comes to mind immediately.
Making money in stocks is based on luck. 1 2 3 4 5
In terms of investing, safety is more important
1 2 3 4 5
than returns.
Disagree
Disagree
Strongly
Strongly
Neutral
Agree
B Agree
I can get my salary deducted to pay off my debt. 1 2 3 4 5
I would sell all my investments, if money is
1 2 3 4 5
required right away.
I might get an overdue notice from a creditor. 1 2 3 4 5
I would sell my investments even at a discount, if
1 2 3 4 5
required.
121
APPENDIX B
Confirmatory Factor Analysis: Items and Standard Loadings
Standardized
Construct and Items
Loadings
Emotional Intelligence (Wong and Law, 2002)
Self-Emotion Appraisal (SEA)
1. I have a good sense of why I have certain feelings most of the time. 0.751
2. I have good understanding of my own emotions. 0.623
3. I really understand what I feel. 0.673
4. I always know whether or not I am happy. 0.640
5. I always know when I am being unreasonable. 0.582
Other’s Emotion Appraisal (OEA)
6. I always know my friends' emotions from their behaviour. 0.784
7. I am a good observer of others' emotions. 0.827
8. I am sensitive to the feelings and emotions of others. 0.875
9. I have good understanding of the emotions of people around me. 0.921
10. I am aware of non-verbal messages that other people’s send. 0.760
Use of Emotions (UOE)
11. I always set goals for myself and then try my best to achieve them. 0.759
12. I always tell myself I am a competent person. 0.886
13. I am a self-motivating person. 0.707
14. I would always encourage myself even when I feel low. 0.901
15. I expect good things to happen. 0.866
Regulation of Emotions (ROE)
16. I am able to control my temper so that I can handle difficulties
0.529
rationally.
17. I am quite capable of controlling my own emotions. 0.778
18. I can always calm down quickly when I am very angry. 0.866
19. I have good control over my own emotions. 0.905
20. I can let anger ‘go’ quickly so that it no longer affects me. 0.346
Impulsiveness (Lynam, 2013)
Negative Urgency (NU)
1. When I feel bad, I will often do things I later regret in order to make
0.728
myself feel better now.
2. Sometimes when I feel bad, I can’t seem to stop what I am doing even
0.797
though it is making me feel worse.
3. When I am upset I often act without thinking. 0.773
4. When I feel rejected, I will often say things that I later regret. 0.692
5. It is hard for me to resist acting on my own feelings. 0.718
Lack of Perseverance (LOPe)
6. I generally like to see things through to the end. 0.230
122
Standardized
Construct and Items
Loadings
7. Unfinished tasks really bother me. 0.825
8. I concentrate easily. 0.407
9. I tend to give up easily. 0.875
10. I am pretty good about pacing myself so as to get things done on time. 0.345
Lack of Premeditation (LOPr)
11. I have a reserved and cautious attitude towards life. 0.294
12. I like to stop and think things over before I do them. 0.574
13. I tend to value and follow a rational, "sensible" approach to things. 0.798
14. Before I get into a new situation, I like to find out what to expect from
0.793
it.
15. Before making up my mind, I consider all the advantages and
0.757
disadvantages.
Positive Urgency (PU)
16. When I am very happy, I tend to do things that can cause me problem. 0.743
17. I tend to lose control when I am in a great mood. 0.811
18. Others are shocked or worried about the things I do when I am feeling
0.821
very excited.
19. I tend to act without thinking when I am really excited. 0.889
20. When overjoyed I feel like I can’t stop myself from being overboard. 0.771
Financial Risk Tolerance (Grable and Joo, 2004)
1. Investing is too difficult to understand. 0.805
2. I am more comfortable putting my money in a bank account than in the
0.796
stock market.
3. When I think of the word “risk” the term “loss” comes to mind
0.810
immediately.
4. Making money in stocks is based on luck. 0.726
5. In terms of investing, safety is more important than returns. 0.625
Financial Risk-taking Behaviour (Grable et al., 2008)
1. I can get my salary deducted to pay off my debt. 0.716
2. I would sell all my investments, if money is required right away. 0.597
3. I might get an overdue notice from a creditor 0.828
4. I would sell my investments even at a discount, if required. 0.420
123
APPENDIX C
Research Work Published
Hemrajani, P., & Sharma, S. K. (2017). An empirical approach to assess psychological
effects on financial literacy of college grauates. UPES Financia – A cross functional
International Journal of Finance, 1(8)
Hemrajani, P., & Sharma, S. K. (2018). Influence of Urgency on Financial Risk-Taking
Behaviour of Individual Investors: The Role of Financial Risk Tolerance as a Mediating
Factor. IUP Journal of Applied Finance, 24(1).
Hemrajani, P., & Sharma, S. K. (2018). Emotional Consciousness and its relationship
with Financial Risk Tolerance and Financial Risk-taking Behaviour of Individual
Investors’. CU Global Management Review
Paper entitled ‘The mediating effect of financial risk tolerance on the relationships
between Instrumental Risk and Financial risk-taking behaviour: A study of Individual
Investors’ submitted for publication in Amity Journal of -Management Research and is
under review.
Paper entitled ‘Measuring Financial Risk Tolerance: Role of Socio-Demographic Factors
under the influence of Concern towards money’ submitted for publication in Vision: The
Journal of Business Perspective and is under review.
124
APPENDIX D
List of Conferences Attended and Paper Presentations
Presented paper entitled, ‘Relevance of Emotional Intelligence in Investment Decisions’
at National Conference on Economic Transformation Agenda for Sustainability (NITI
Ayog), Udaipur on November 18, 2017.
Presented paper entitled, ‘Impact of Psychological constructs on Financial Literacy
amongst college students’ at ‘Second International Finance Conference 2017’ organized
by Jamia Millia Islamia University, New Delhi on October 11, 2017 and received ‘Best
Paper Award’.
Presented paper entitled, ‘An empirical approach to assess psychological effects on
Financial Literacy of College Graduates at 'Second International Business Summitt 2017'
held at Amity University, Noida on September 15, 2017.
Presented research work (Synopsis) in 8th Doctoral Conference entitled, ‘Current Trends
in Management & Information Technology’ on July 28, 2017 and received Prof. K.P. Jain
Award at Hindustan Institute of Management & Computer Studies, Farah, Mathura
(U.P.).
Participated in 2nd Two Day Multi-Disciplinary National Conference on Pre-Doctoral
Research [MDNCPDR-2017] organized by Dayalbagh Educational Institute, Agra on
February 12-13, 2017.