Trauma and investment horizon: Evidence from a representative China equity investor behavior survey

Ruiqi Guan, Gady Jacoby, Xiaomeng Lu, Fang Wan and Qi Zhang

Finance Research Letters, 2023, vol. 57, issue C

Abstract: Results from a large sample of individual Chinese investors demonstrate that they were more likely to trade stocks for short-term speculation after experiencing trauma such as natural disasters, serious illness, or death in their immediate family. They exhibited higher impulsivity, a greater desire for immediate gratification, a greater willingness to follow trends, and more risk-taking behaviors as a result of the trauma experience. The data also show that the negative relation between trauma experience and investment horizon is less pronounced for older and married individuals.

Keywords: Trauma; Investment horizon; Household finance (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005251

DOI: 10.1016/j.frl.2023.104153

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