Abstract:

Stress is an essential part of everyday life. However, it causes psychological or physiological changes and negatively impacts our lives. It can have a negative impact on our moods, making it impossible for us to make the right decisions. Perceived risk negatively affects the investment decisions of investors under stress. This study investigated the impact of stress on individual investors' risk perceptions. The sample consisted of 390 participants. Data were collected using a survey. The data were analyzed using frequency analysis, explanatory factor analysis, confirmatory factor analysis, and reliability analysis. The research hypothesis was tested using structural equation modeling. The results showed that stress significantly and positively affected participants' risk perceptions. Participants experienced higher levels of stress when they made erroneous transactions. To be on the safe side, they turned to less risky investment instruments.

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