Emotional Finance: As a New Approach to Understanding the Markets

Dumanli, Asiye Nur; Aren, Selim

doi:10.15637/jlecon.8.2.03

Cited by 5 publications

(4 citation statements)

References 23 publications

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“…Dumanli dan Aren mengembangkan teori keuangan emosional, yang menggabungkan proses sadar dan tidak sadar dalam keputusan investasi, memberikan penjelasan tentang krisis dan gelembung pasar (Sari et al, 2022). Brooks et al menemukan bahwa emosi positif terhadap investasi dan kehidupan meningkatkan toleransi risiko di kalangan investor ritel yang berbasis di Inggris, dengan emosi positif memiliki dampak yang lebih kuat daripada emosi negatif (Dumanli & Selim, 2021). Penelitian-penelitian ini berkontribusi dalam memahami hubungan yang kompleks antara ketahanan emosi dan pengambilan keputusan investasi di kalangan investor muda…”

Section: Pendahuluanunclassified

Analisis Pengaruh Ketahanan Emosional, dalam Pengambilan Keputusan Investasi di Komunitas Investor Muda di Indonesia

Judijanto,

Ilhamiwati

2023

JPKWS

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Penelitian ini mengeksplorasi dinamika yang rumit antara ketahanan emosional, faktor demografis, dan pengambilan keputusan investasi dalam konteks investor muda di Indonesia. Sampel dari 200 partisipan, berusia 18 hingga 35 tahun, menjadi sasaran studi cross-sectional yang menggunakan gabungan analisis kuantitatif. Statistik deskriptif menunjukkan profil demografis yang beragam, termasuk distribusi gender yang seimbang, toleransi risiko yang moderat, dan ketahanan emosional yang cukup tinggi. Analisis korelasi menunjukkan hubungan positif yang signifikan antara ketahanan emosional dan pengambilan keputusan investasi, serta hubungan yang tidak kentara antara usia dan ketahanan emosional. Analisis regresi lebih lanjut menjelaskan kontribusi unik dari ketahanan emosional dan toleransi risiko terhadap keputusan investasi, dengan menyoroti peran sentral mereka. Temuan ini menggarisbawahi pentingnya faktor emosional dan sikap terhadap risiko dalam membentuk perilaku keuangan di kalangan investor muda.

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Section: Pendahuluanunclassified

Analisis Pengaruh Ketahanan Emosional, dalam Pengambilan Keputusan Investasi di Komunitas Investor Muda di Indonesia

Judijanto,

Ilhamiwati

2023

JPKWS

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“…Phantasy causes an individual to perceive the reality of existence differently. In this context, even though the individual does not have awareness, phantasy affects behaviors and preferences (Taffler, 2014; Dumanlı and Aren, 2021).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Studies that look at the financial crises from an emotional finance perspective but approach it with a conceptual framework have been carried out more recently. Aren (2019) and Dumanlı and Aren (2021) evaluated the basic concepts of the theory. They state that it will be very beneficial for market regulators, fund managers and investors to look at phantasy and its explainers in understanding the financial crisis and bubbles.…”

Section: Phantasymentioning

confidence: 99%

The effect of individual cultural values and phantasy on risky investment intention

Aren

Hamamcı

2021

JEAS

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PurposeThis study aims to examine the impact of conscious and unconscious processes on risky investment intention. In this framework, the effect of individual cultural values and phantasy on risky investment intentions was investigated. In addition, the mediating role of phantasy in the relationship between individual cultural values and risky investment intentions was also analyzed.Design/methodology/approachData were collected between May 14, 2020 and June 01, 2020, when our graduate students voluntarily shared the online survey link on their social networks. In this way, 1,934 people in total answered the questionnaire. To test the study model, structural equation modeling (SEM) was performed using the AMOS program. In addition, ANOVA and independent sample t-test analyses were conducted using the SPSS program to analyze whether individual cultural values and risky investment intent differ according to demographic variables.FindingsAccording to the analysis results, power distance, collectivism, masculinity and long-term orientation are seen as antecedents of phantasy. While a positive relationship was found between power distance, collectivism and risky investment intention, a negative relationship was found between uncertainty avoidance and risky investment intention. Statistical findings regarding the mediating effect of phantasy on the relationship between individual cultural values and risky investment intentions were also determined. In addition to these, the differences in individual cultural values and risky investment intentions according to age, education level, sex and marital status were investigated. Individuals with the highest uncertainty avoidance level were in the 41–50 age group. Individuals with the highest long-term orientation level were individuals aged 41 and over. Individuals with the lowest risky investment intentions were in the +51 age group. Collectivism and power distance did not differ according to age. There were no differences in the relevant variables according to the level of education. Males have higher levels of risky investment intention, power distance, masculinity and collectivism than females, and married individuals have higher levels of uncertainty avoidance, masculinity and collectivism than singles.Originality/valueThis study is the first to investigate the impact of conscious and unconscious processes on risky investment intentions together. On the other hand, the number of studies empirically investigating the relationship between phantasy and risky investment intention is quite limited, and the authors have also provided the findings for the existence of a relationship between these two variables.

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“…Unconscious feelings guide financial decision-making (Aren & Hamamcı, 2019). Emotional finance theory postulates that people are driven by feelings and fantasies while making investment decisions (A. N. Dumanli & Aren, 2021).…”

Section: Introductionmentioning

confidence: 99%

The Impact of Emotional Finance, and Market Knowledge and Investor Protection on Investment Performance in Stock and Real Estate Markets

Irfan,

Adeel,

Malik

2023

Sage Open

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Investors are influenced emotionally when making financial investment decisions. Investing paradigms largely ignore emotions, a phenomenon explored in this study. This study used a survey to examine the relationship between emotional Finance (anxiety, happiness, and optimism), investor protection, and market knowledge and investment performance. Investors in real estate and stocks have provided us with data. We found that market knowledge plays a significant role in ensuring superior investment performance. Anxiety, happiness, and optimism are strong indicators of a higher-order construct of emotional Finance. The findings also showed that emotional Finance is positively associated with investment performance. At the same time, investor protection has been found to have no association with investment performance. Others may investigate additional components of emotions and financial decisions.

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Emotional Finance: As a New Approach to Understanding the Markets

Cited by 5 publications

References 23 publications

Analisis Pengaruh Ketahanan Emosional, dalam Pengambilan Keputusan Investasi di Komunitas Investor Muda di Indonesia

Analisis Pengaruh Ketahanan Emosional, dalam Pengambilan Keputusan Investasi di Komunitas Investor Muda di Indonesia

The effect of individual cultural values and phantasy on risky investment intention

The Impact of Emotional Finance, and Market Knowledge and Investor Protection on Investment Performance in Stock and Real Estate Markets

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