Relationship between Risk Appetite and Investment Decisions in High-Risk Ventures in South Korea
DOI:
https://doi.org/10.47604/ijmrm.2947Keywords:
Risk Appetite, Investment Decisions, High-Risk VenturesAbstract
Purpose: The aim of the study was to examine the relationship between risk appetite and investment decisions in high-risk ventures in South Korea.
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: The relationship between risk appetite and investment decisions in high-risk ventures in South Korea reveals a strong correlation where investors with higher risk tolerance are more likely to engage in high-risk ventures. These investors are driven by the potential for substantial returns, despite the associated volatility and uncertainty. The findings indicate that cultural factors, economic conditions, and market dynamics in South Korea play a significant role in shaping this risk appetite.
Unique Contribution to Theory, Practice and Policy: Prospect theory, risk parity theory & behavioral portfolio theory may be used to anchor future studies of relationship between risk appetite and investment decisions in high-risk ventures in South Korea. Practically, businesses should focus on several strategies to optimize the effectiveness of their insurance coverage in managing business interruption risks.
Downloads
References
Australian Energy Market Operator. (2023). Annual Report 2022. Retrieved from AEMO
Australian Energy Market Operator. (2023). Annual report on renewable energy investments. Retrieved from https://www.aemo.com.au
Bangladesh Ministry of Textiles and Jute. (2023). Annual report on textile sector investments. Retrieved from https://www.textiles.gov.bd
Bangladesh Ministry of Textiles and Jute. (2023). Textile Sector Investment Report 2022. Retrieved from Ministry of Textiles and Jute
Brazilian Agricultural Research Corporation. (2023). Agricultural investments report 2022. Retrieved from DOI:10.5281/zenodo.6888464
Brazilian Agricultural Research Corporation. (2023). Annual Agricultural Innovation Report 2022. Retrieved from Embrapa
Brazilian Agricultural Research Corporation. (2023). Annual report on agricultural innovation. https://www.embrapa.br/en/annual-report
Brown, K., & Miller, T. (2023). Behavioral biases and investment decisions in high-risk ventures. Journal of Behavioral Finance, 24(3), 345-362. https://doi.org/10.1080/15427560.2023.2145693
Danish Energy Agency. (2023). Annual report on renewable energy investments. Retrieved from https://www.ens.dk
Egyptian Ministry of Planning and Economic Development. (2023). Annual report on infrastructure investments. Retrieved from https://www.mop.gov.eg
Ethiopian Ministry of Education. (2023). Annual budget report 2023. https://www.moe.gov.et/en/publications
Ethiopian Ministry of Finance. (2023). Infrastructure Investment Report 2022. Retrieved from Ministry of Finance
Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. Journal of Finance, 25(2), 383-417. https://doi.org/10.1111/j.1540-6261.1970.tb00518.x
Federal Ministry for Economic Affairs and Energy. (2023). Germany’s investment in digital and green technology. Retrieved from https://www.bmwi.de
Federal Ministry for Economic Affairs and Energy. (2023). Germany’s Investment in Green Technology 2022. Retrieved from BMWi
Federal Ministry for Economic Affairs and Energy. (2023). Germany’s digital and green technology investments. Retrieved from DOI:10.5281/zenodo.6888494
French Ministry for the Ecological Transition. (2023). Green Investment Report 2022. Retrieved from Ecological Transition
Ghana Energy Commission. (2023). Renewable Energy Investment Report 2022. Retrieved from Energy Commission
Indian Ministry of Finance. (2023). Annual report on infrastructure investments. Retrieved from https://www.finmin.nic.in
Indian Ministry of Finance. (2023). Economic survey 2023. https://www.finmin.nic.in/economic-survey-2023
Indian Ministry of Finance. (2023). Infrastructure Investment Report 2022. Retrieved from Ministry of Finance
Indonesian Ministry of Public Works and Housing. (2023). Infrastructure Development Report 2022. Retrieved from Ministry of Public Works and Housing
Indonesian Ministry of Public Works and Housing. (2023). Infrastructure investment report 2022. Retrieved from DOI:10.5281/zenodo.6888522
Jensen, T., & Kristensen, A. (2023). The economic impact of Denmark’s green energy investments. Journal of Sustainable Development, 15(2), 112-125. https://doi.org/10.1016/j.jsd.2023.01.002
Johnson, L., & Williams, P. (2022). Investment strategies and economic growth in South Africa: The role of renewable energy. Journal of Development Economics, 45(3), 299-312. https://doi.org/10.1016/j.jdeveco.2022.04.005
Johnson, R. T., & Lee, A. J. (2022). Risk appetite and investment strategies in emerging technologies. Journal of Venture Finance, 19(1), 78-96. https://doi.org/10.1016/j.jvf.2022.03.008
Johnson, R. T., & Lee, A. J. (2022). Risk appetite and investment decisions: An empirical analysis of high-risk ventures. Journal of Financial Behavior, 18(2), 155-173. https://doi.org/10.1016/j.jfb.2022.03.004
Kenya National Innovation Agency. (2023). Annual report on venture capital funding. Retrieved from https://www.kenya.go.ke
Kenya National Innovation Agency. (2023). Venture capital report 2022. Retrieved from DOI:10.5281/zenodo.6888556
Kenya Renewable Energy Authority. (2023). Renewable energy investments 2022. Retrieved from DOI:10.5281/zenodo.6888594
Kenyan Ministry of Agriculture. (2023). Agricultural Technology Investment Report 2022. Retrieved from Ministry of Agriculture
Kenyan Ministry of Health. (2023). Healthcare infrastructure investment report. https://www.health.go.ke/investments
Kenyan National Innovation Agency. (2023). Venture Capital Investment Report 2022. Retrieved from National Innovation Agency
Miller, M. H., & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares. Journal of Business, 34(4), 411-433. https://doi.org/10.1086/294442
Ministry of Economy, Trade, and Industry. (2023). Annual report on technological investments in Japan. https://www.meti.go.jp/english/report/2023
Ministry of Economy, Trade, and Industry. (2023). Technology Investment Report 2022. Retrieved from METI
Moyo, D., & Smith, A. (2022). Educational investments and socioeconomic development in Sub-Saharan Africa. African Economic Review, 55(2), 177-190. https://doi.org/10.1111/1468-0327.12401
Müller, S., & Wagner, H. (2022). Investment trends in Germany’s green and digital sectors. European Economic Review, 20(4), 345-356. https://doi.org/10.1016/j.eer.2022.06.004
Natural Resources Canada. (2023). Annual report on clean technology investments. Retrieved from https://www.nrcan.gc.ca
Natural Resources Canada. (2023). Clean Technology Investment Report 2022. Retrieved from NRCan
Natural Resources Canada. (2023). Clean technology investment report 2022. Retrieved from DOI:10.5281/zenodo.6888658
Netherlands Ministry of Infrastructure and Water Management. (2023). Annual report on sustainable urban development investments. Retrieved from https://www.rijkswaterstaat.nl
Nigerian Federal Ministry of Finance. (2023). Infrastructure investment report 2023. https://www.finance.gov.ng/infrastructure-investment
Nigerian Ministry of Power. (2023). Annual report on energy infrastructure investments. Retrieved from https://www.power.gov.ng
Nigerian Ministry of Power. (2023). Energy Infrastructure Investment Report 2022. Retrieved from Ministry of Power
Nigerian Ministry of Power. (2023). Energy infrastructure investment report 2022. Retrieved from DOI:10.5281/zenodo.6888626
O'Connor, P., & Hughes, M. (2021). Venture capitalists’ risk tolerance and investment behavior. Journal of Private Equity, 24(4), 42-58. https://doi.org/10.3905/jpe.2021.24.4.042
Patel, S., & Gupta, R. (2020). High-net-worth individuals and their risk-taking behaviors in high-risk ventures. Financial Planning Review, 33(2), 119-136. https://doi.org/10.1002/cfp.1642
Philippine Department of Health. (2023). Annual report on healthcare sector investments. Retrieved from https://www.doh.gov.ph
Philippine Department of Health. (2023). Healthcare Sector Investment Report 2022. Retrieved from Department of Health
Philippine Department of Public Works and Highways. (2023). Infrastructure investment report 2022. Retrieved from DOI:10.5281/zenodo.6888682
Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. Journal of Finance, 19(3), 425-442. https://doi.org/10.1111/j.1540-6261.1964.tb02865.x
Smith, J. A., & Brown, K. M. (2023). The effect of risk tolerance on startup investments. Entrepreneurship Theory and Practice, 47(2), 251-271. https://doi.org/10.1177/10422587221097325
Smith, J. A., & Brown, K. M. (2023). The impact of risk tolerance on high-risk investment strategies. Financial Markets and Portfolio Management, 37(1), 45-62. https://doi.org/10.1007/s11408-023-00359-7
Smith, R., Brown, J., & Davis, H. (2022). Infrastructure investments and their impact on economic growth in the UK. European Journal of Economic Policy, 39(1), 45-58. https://doi.org/10.1080/03071022.2022.2145740
South African Department of Energy. (2023). Green Energy Investment Report 2022. Retrieved from Department of Energy
South African Department of Energy. (2023). Green energy investments annual report. https://www.energy.gov.za/green-energy-report
South African Department of Energy. (2023). Green energy investments 2022. Retrieved from DOI:10.5281/zenodo.6888710
South African National Roads Agency. (2023). Transport infrastructure investment report 2022. Retrieved from DOI:10.5281/zenodo.6888742
South Korean Ministry of Science and ICT. (2023). Annual report on technology development investments. Retrieved from https://www.msit.go.kr
South Korean Ministry of Science and ICT. (2023). Technology and Innovation Investment Report 2022. Retrieved from MSIT
Sri Lankan Ministry of Education. (2023). Annual report on educational infrastructure investments. Retrieved from https://www.education.gov.lk
Sri Lankan Ministry of Health. (2023). Annual report on healthcare sector investments. Retrieved from https://www.health.gov.lk
Swiss Financial Market Supervisory Authority. (2023). Annual report on financial technology investments. Retrieved from https://www.finma.ch
Swiss Financial Market Supervisory Authority. (2023). Fintech Investment Report 2022. Retrieved from FINMA
Turkish Ministry of Culture and Tourism. (2023). Annual report on tourism sector investments. Retrieved from https://www.ktb.gov.tr
U.S. Energy Information Administration. (2023). Annual energy outlook 2023. https://www.eia.gov/outlooks/aeo/
U.S. Energy Information Administration. (2023). Annual Energy Report 2022. Retrieved from EIA
U.S. Energy Information Administration. (2023). Annual report on clean energy investments. Retrieved from https://www.eia.gov
U.S. Energy Information Administration. (2023). Clean energy investments report 2022. Retrieved from DOI:10.5281/zenodo.6888770
UK Department for Transport. (2023). Transport and infrastructure investment plan. https://www.gov.uk/government/publications/transport-infrastructure-investment-plan
Weber, A., & Müller, R. (2023). Investment trends in Switzerland: A focus on fintech and sustainable finance. Journal of Financial Regulation and Compliance, 31(2), 124-136. doi:10.1108/JFRC-04-2022-0030
Wilson, T., & Clarke, G. (2022). Portfolio management and risk appetite: A longitudinal study. Journal of Financial Management, 21(1), 87-102. https://doi.org/10.1016/j.jfinm.2022.01.005
Zhang, L., Chen, Y., & Lee, S. (2021). Risk perception and investment behavior in volatile markets. Journal of Risk Research, 24(5), 640-659. https://doi.org/10.1080/13669877.2021.1955449
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Han Seung
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
