Financial risk-taking related to individual risk preference, social comparison and competition

Gärling, Tommy; Fang, Dawei; Holmén, Martin; Michaelsen, Patrik

doi:10.1108/rbf-11-2019-0153

Cited by 12 publications

(7 citation statements)

References 57 publications

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“…Moreover, our findings suggest that HCO is more strongly related to risk-taking than SDCO, which supports the claim in previous research (Harris et al, 2015;Liu et al, 2021). In summary, this study contributes to a growing body of literature emphasizing the existence of a strong nexus of interactions among social comparison, TC, and risk-taking (Zhu et al, 2016;Filippin and Gioia, 2018;Gärling et al, 2021;Liu et al, 2021;Li et al, 2023;Schwerter, 2023).…”

Section: Discussionsupporting

confidence: 90%

The link between social comparison orientation and domain-specific risk-taking: exploring the mediating role of two dimensions of trait competitiveness

Wang,

Elliot,

Derrington

et al. 2024

Front. Psychol.

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IntroductionOur recent research has demonstrated that social comparison orientation of ability (SCO-ability) is an antecedent of trait competitiveness (TC), and TC mediates the relation between SCO-ability and domain-specific risk-taking. TC is a multi-dimensional trait, therefore we sought to expand on prior research by examining whether SCO-ability predicted two distinct dimensions of TC: hypercompetitive orientation (HCO) and self-development competitive orientation (SDCO).MethodsWe investigated how these different dimensions of TC mediated the relation between SCO-ability and both overall and domain-specific risk-taking in two correlational studies of 622 college students (313 males, mean age = 22.10, SD = 2.35) and 717 adult workers (368 males, mean age = 27.92, SD = 5.11).ResultsWe found that SCO-ability positively predicted HCO. Together, SCO-ability and HCO predicted overall risk-taking and risk-taking in the recreational and ethical domains in both samples. HCO mediated the relation between SCO-ability and both overall risk-taking and risk-taking in the recreational and ethical domains. Additionally, SCO-ability positively predicted SDCO. SCO-ability and SDCO mainly predicted risk-taking in the recreational domain in both studies. SDCO mediated the relation between SCO-ability and risk-taking only in the recreational domain.DiscussionCollectively, the findings above advance our understanding of the relation between competition and risk-taking by using differentiated measures of TC (HCO and SDCO). Our findings suggest that HCO is more strongly related to risk-taking than SDCO, thereby refining the possible role of SCO-ability and TC in predicting overall risk-taking and domain-specific risk-taking.

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Section: Discussionsupporting

confidence: 90%

The link between social comparison orientation and domain-specific risk-taking: exploring the mediating role of two dimensions of trait competitiveness

Wang,

Elliot,

Derrington

et al. 2024

Front. Psychol.

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“…Grling et al explored how social comparison and competitive motivation explain high risk in fund management. Experiments on asset markets demonstrated this when performance depended on ranking-based incentives [3]. Ferri investigated whether traders behave differently under higher time pressure (fast conditions) versus lower time pressures (slow conditions).…”

Section: Introductionmentioning

confidence: 99%

Evaluation of the Fluctuation Mechanism of Behavioral Financial Market Based on Edge Computing

Yuan

2022

International Transactions on Electrical Energy Systems

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The global economy is growing faster and faster. Behavioral finance is a transformation of financial theory. Over the past decade, this shift has had strong repercussions in academia, challenging the dominance of traditional finance and forming its own theoretical system. With the development of the stock market, traditional financial theories and behavioral financial theories continue to converge, and traditional financial theories based on investor rationality and efficient market assumptions are subject to unprecedented conjectures. Financial markets are affected by subjective factors such as people’s behaviors and emotions. Investors always make decisions based on bounded rationality, cognitive deficits, and, ultimately, rationality. In order to avoid the complex and unpredictable risks of financial markets and understand their changing laws, the analysis of the characteristics of financial instability is conducive to understanding the nature and internal principles of financial markets. Analysis of the volatility characteristics of financial markets must give priority to the analysis of financial chronological order. Financial time series are characterized by differences in financial markets, which are indeterminate orders, and the analysis of their fluctuations becomes crucial for stimulating the microstructure of financial behavior markets. Therefore, in order to give full play to the role of edge computing and promote the controllability of behavioral financial market volatility, this paper used the calculation task load model algorithm, time slot length optimization algorithm, asymmetric thick-tail random fluctuation, and volatility analysis application algorithm to study the subject of how to learn to reduce financial market volatility, summarizing and discussing the experiment. The research results showed that the behavioral financial market volatility mechanism based on edge computing constructed in this paper improved the predictability of financial market volatility by 15%.

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“…In comparison, actual investment is driven by the habits created by an individual. Finally, Gärling et al. (2021) introduce another internal factor that affects investor behavior: incentivization.…”

Section: Content Analysismentioning

confidence: 99%

Mutual funds marketing: a hybrid review and framework development

Thakker,

Kalro,

Joshipura

et al. 2023

IJBM

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PurposeThis study examines current dynamics, consolidates current knowledge, elicits trends, identifies and analyzes primary research clusters, and offers future research directions for mutual fund marketing.Design/methodology/approachUsing bibliographic information from the SCOPUS database, this study used sequential bibliometric (143 documents) and content analyses (37 documents). Bibliometric analysis aids descriptive analysis and science mapping, while content analysis facilitates identifying and analyzing research clusters and provides future research directions.FindingsThe study identifies publication trends, the most relevant authors, and journal articles and unveils the knowledge structures of the field. Analysis of bibliographic coupling reveals the following significant clusters: (1) socially responsible investing and investor preferences, (2) investor factors and traits and investment decisions; (3) external factors, mutual funds' performance and proxy information; (4) the role of disclosures and ratings in shaping investment choices, and (5) cognitive biases, information processing errors and investor behavior. Finally, it offers future research directions.Research limitations/implicationsUsing different databases, bibliometric analysis tools, study periods or article screening criteria for the study might yield different results. However, this study's significant findings are robust to such alternatives.Practical implicationsThis study summarizes primary clusters and identifies gaps in the current literature, which helps scholars, practitioners, regulators and policymakers understand the nuances of mutual funds marketing. Future studies may focus on the role of online and offline integration, using neuroscience for data m and contemporary investment behavior models.Originality/valueThis is the first study to apply a two-stage sequential hybrid review of articles published over the last decade in high-quality journals, enabling an analysis of the depth and breadth of mutual funds marketing research.

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Financial risk-taking related to individual risk preference, social comparison and competition

Cited by 12 publications

References 57 publications

The link between social comparison orientation and domain-specific risk-taking: exploring the mediating role of two dimensions of trait competitiveness

The link between social comparison orientation and domain-specific risk-taking: exploring the mediating role of two dimensions of trait competitiveness

Evaluation of the Fluctuation Mechanism of Behavioral Financial Market Based on Edge Computing

Mutual funds marketing: a hybrid review and framework development

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