Perceived Risk and Its Influence on Financial Asset Investment Decisions of Thai Investors

Abstract

This study examines how perceived risk influences financial asset investment decisions among
Thai investors. Using a quantitative research design, data were collected from 420 respondents
through a structured questionnaire measuring five dimensions of perceived risk: financial,
performance, psychological, social, and time risks. Descriptive statistics, correlation analysis,
and multiple regression analysis were employed to determine the relationships among
variables. The findings reveal that financial risk, performance risk, and psychological risk
significantly and negatively affect investment decisions, indicating that higher perceived risk
reduces investors’ willingness to invest. Time risk exerts a weaker but significant influence,
while social risk demonstrates no significant effect. These results support behavioral finance
theories suggesting that investment behavior is shaped not only by financial information but
also by individuals’ subjective perceptions and emotional responses to uncertainty. The study
highlights the importance of enhancing investors financial literacy, improving transparency in
financial products, and developing effective investor education programs to reduce perceived
risks and promote more confident and informed decision-making in Thailand’s financial
markets.