THE EFFECTS OF EMOTIONS ON RISK AVERSION BEHAVIOR

Selim Aren () and A. Berrak Kã–ten ()
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Selim Aren: Yildiz Technical University
A. Berrak Kã–ten: Istanbul Kultur University

JOURNAL OF LIFE ECONOMICS, 2019, vol. 6, issue 4, 421-436

Abstract: This study investigates the effects of basic emotions like fear, sadness, anger, and hope on risk aversion and the intent to make a risky investment. The data used in the study in 2017 were obtained through convenience sampling. A relationship was found between fear and risk aversion and between risk aversion and the intent to make a risky investment. Both objective and subjective financial literacy affect the relationship between fear and risk aversion, while the latter significantly affects sadness. The study makes an important contribution to the literature on the effects of basic emotions on risky investment intent.

Keywords: Risk aversion; risky investment intention; fear; hope; sadness; anger (search for similar items in EconPapers)
JEL-codes: D14 M21 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:jle:journl:v:6:y:2019:i:4:p:421-436

DOI: 10.15637/jlecon.6.026

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