A Risk Perception Primer: A Narrative Research Review of the Risk Perception Literature in Behavioral Accounting and BehavioralFinance
A Risk Perception Primer: A Narrative Research Review of the Risk Perception Literature in Behavioral Accounting and BehavioralFinance ArXiv ID: ssrn-566802 “View on arXiv” Authors: Unknown Abstract A significant topic within the behavioral finance literature is the notion of perceived risk pertaining to novice investors (i.e. individuals, finance students) Keywords: Behavioral finance, Perceived risk, Novice investors, Investor sentiment, Risk tolerance Complexity vs Empirical Score Math Complexity: 1.0/10 Empirical Rigor: 0.5/10 Quadrant: Philosophers Why: The paper is a narrative literature review focusing on conceptual definitions and theoretical frameworks of risk perception, with no original mathematical modeling, empirical testing, or implementation details. flowchart TD RQ["Research Goal:<br>Examine risk perception in<br>behavioral finance/accounting"] --> Method["Methodology:<br>Narrative literature review"] Method --> Inputs["Key Inputs:<br>- Novice investor studies<br>- Behavioral finance models<br>- Risk tolerance metrics"] Inputs --> Comp["Analysis Process:<br>Identify patterns &<br>theoretical frameworks"] Comp --> Outcome1["Outcome 1:<br>Perceived risk ≠<br>actual financial risk"] Comp --> Outcome2["Outcome 2:<br>Heuristics & biases<br>drive investor sentiment"] Comp --> Outcome3["Outcome 3:<br>Education gaps in<br>novice risk assessment"]