This paper presents the results of an investigation of the determinants of investment risk behavior in employer-sponsored retirement plans. Using a field survey of 795 college and university employees, I examined the significance of demographic and attitudinal/dispositional variables on employees’ risk behavior in selecting among investment allocation options provided by defined contribution pension plans. The results identified primary causes of risky investment behavior including income, age, other retirement plan participation, self-efficacy, knowledge of investment principles and general risk propensity.
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