Paper title: Investor Education and Risk Taking Behavior in the Stock Market
Authors: 
Kristjan Liivamägi - Department of Economics and Finance, TalTech
Tarvo Vaarmets - Department of Economics and Finance, TalTech
Tõnn Talpsepp - Department of Economics and Finance, TalTech

Abstract:

We analyze extensive educational characteristics, which affect investor risk taking behavior in the stock market. We use a unique dataset form Tallinn stock exchange, covering stock market transactions of a full business cycle and along with official educational background dataset for all individual investors. Analyzing variety of educational characteristics, we provide empirical evidence that investors with top performance of national high school exams and investors holding a masters or doctors degree are more risk averse compared to investors with not such educational characteristics. Additionally, we provide empirical evidence that investors holding a university degree in economics or finance are more risk seeking. We control for demographic variables, investor`s experience, wealth and portfolio allocation.

The public research seminars of the Department of Economics and Finance (DEF) at Tallinn University of Technology  usually take place on the second and fourth Wednesdays of the month both in online  and onsite format, unless announced otherwise. The seminar will last one hour, presentation will last approximately 45 minutes followed by 15 minutes of discussion. The seminars are held in English. Questions about the seminar can be sent to the seminar coordinator Karsten Staehr: karsten.staehr@taltech.ee.