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This research examines the use of disclosures included in IRA advertisements to determine their impact on purchase decisions. Disclosures were manipulated through different framing language to examine the investor’s risk perception. The Hayes Process Model was used to test the significance of investor risk perception and risk propensity (investor’s likelihood to act on risk perception) related to framing manipulation and ultimately, the purchase decision. The level of risk propensity was then used to assess the impact on the purchase decision for investors with varying sophistication levels. Additionally, the investor’s sophistication level, determined via a series of investment questions, was also considered in examining the impact on the purchase decision. Demographic data such as investor investment experience, age, gender, education, marital status, and ethnicity, were also investigated. Results showed there was a strong mediated relationship between the sophistication level of the investor, the willingness to act on risk, and the likelihood to purchase an Individual Retirement Account (“IRA”).



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