RESEARCH

ABSTRACT

Risk Management Strategies and Investment Behaviors are considered important factors in the investing activities of the retail investors. This study seeks to determine the relationship between Risk Management Strategies and Investment Behavior of Generation Z retail investors. The study is a correlational research and purposive sampling was used to select the respondents for this study. Cochran’s formula was utilized to determine the total sample size or total number of respondents. Spearman’s Rank-Order Correlation was employed to assess the significant relationship of Risk Management Strategies and Investment Behaviors. Based on the results, it showed that risk management strategies have a significant relationship with one or more of the investment behaviors. Risk avoidance has a significant relationship with confirmation bias. Risk reduction has a significant relationship with all of the investment behaviors such as overconfidence, loss-aversion, recency bias, and confirmation bias. Risk transfer shows a significant relationship with only loss-aversion and confirmation bias. And lastly, risk acceptance also has a significant relationship with all of the investment behaviors. This study recommends exploring other types of behavioral biases under cognitive bias and emotional bias to determine their correlation with risk management strategies. Also, broadening the sample size, demographic scope, and geographic scope of the study can improve the generalizability of the study and provide a more comprehensive understanding of the relationship between investment behavior and risk management strategies. The researchers also recommend to utilize interviews and focus group discussions to gain an in-depth understanding of the underlying values and attitudes concerning investment behavior.

KEYWORDS

Risk Management Strategies, Investment Behaviors, Generation Z, Retail Investors, Polytechnic University of the Philippines

CITATION

Cruz, M. A., De Mesa, L., Francia, A., Fronda, J. M., Mesia, F. M., Pantaleon, A., Peruda, R. R., Quinto, J., Quisao, K. L., Secusana, M. A., & Cortez, D. (2024). THE RELATIONSHIP BETWEEN RISK MANAGEMENT STRATEGIES AND INVESTMENT BEHAVIOR OF GENERATION Z RETAIL INVESTORS IN STA. MESA, MANILA. GUILD OF EDUCATORS IN TESOL INTERNATIONAL RESEARCH JOURNAL, 2(2), 174–195.
https://doi.org/10.5281/zenodo.12216441