Factors Influencing Risk Appetite in Stock Market Investment among Young Investors: A Theoretical Review

This study synthesizes theoretical frameworks and empirical evidence regarding the risk appetite of young investors in the stock market within the contemporary digital landscape. Drawing upon classical finance theories, behavioral finance perspectives, and technology acceptance models, the paper demonstrates that risk appetite is not a fixed personal trait but rather a dynamic, context-dependent construct shaped by the interaction of cognitive, emotional, and technological forces. The review indicates that younger cohorts, such as Millennials and Generation Z, tend to exhibit higher risk acceptance due to longer investment horizons and their proficiency with financial technology (Fintech). However, the research also highlights the dual nature of financial knowledge and the "gamification" features of trading platforms, which can amplify overconfidence and impulsive investment behaviors. The paper proposes an integrative behavioral–technological perspective and emphasizes the need for future longitudinal studies to track the evolution of risk appetite across different market cycles to support effective policy-making and financial education.