The Influence of Financial Interest, Sensation Seeking, and Financial Literacy on Risk Tolerance

SUTANTO, LEVINA and Anastasia, Njo (2025) The Influence of Financial Interest, Sensation Seeking, and Financial Literacy on Risk Tolerance. [UNSPECIFIED]

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Abstract

This study aims to investigate the influence of financial interest, sensation seeking (thrill & adventure, experience seeking, disinhibition, boredom susceptibility), and financial literacy on risk tolerance. Data was collected through an online questionnaire distributed via Google Forms to freelancers in the design and multimedia industry residing in Surabaya, who are also investors in the capital market, selected according to the purposive sampling technique criteria. The data collection process yielded responses from 100 participants and was processed using the Structural Equation Model-Partial Least Square (SEM-PLS). The findings demonstrate that financial interest, sensation-seeking experience, sensation-seeking boredom susceptibility, and financial literacy significantly influence freelancers� risk tolerance. However, sensation-seeking thrill & adventure and sensation-seeking disinhibition showed no significant influence on freelancers� risk tolerance. Given the artistic focus of the design and multimedia sector, which contrast with the more analytical nature of finance, freelancers may experience unique sensations when making investment decisions in the capital market, thus impacting their risk tolerance. This study provides valuable insights for individuals considering investment, highlighting the importance of both financial knowledge and psychological condition and its impact on the financial sector�s development.

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