Investment goals and mental accounting in French retail clients

Abstract

La comptabilité mentale est un processus cognitif qui guide les décisions financières personnelles des individus. L’étude de la façon dont les individus forment les comptes mentaux, de l’évolution de ces comptes avec le temps ou sous l’effet de facteurs environnementaux n’a jamais été menée. Nous montrons comment un facteur externe, le questionnaire MiFID, peut renforcer la comptabilité mentale. Nous utilisons les données bancaires et les réponses aux questionnaires de plus de 60 000 clients. Nous identifions les déterminants du nombre d’objectifs d’investissement. Nous construisons une typologie d’objectifs mentaux et montrons que les décisions financières correspondent aux objectifs mentaux des clients.

Banks retail clients' profiles and the gender gap in subjective financial literacy of spouses

“…Specifically, MiFID indicators, that is, subjective financial literacy, selfassessed risk tolerance and attitudes toward losses, significantly impact stock market participation. Another paper based on the same dataset shows that stating investment goals in the MiFID questionnaire supports retail investors in achieving these goals (Broihanne & Orkut, 2018), in other words, this paper shows that the MiFID questionnaire strengthens mental accounting (Thaler, 1985).…”

“…We present the findings of a series of papers that examine retail clients' MIFID questionnaires answers and their banking or trading records over time. We show that retail clients' profiles help in understanding stock market participation by retail investors (Broihanne & Orkut, 2022) and financial goals setting (Broihanne & Orkut, 2018) but also that the profiles aid in identifying the more sophisticated investors (Bellofatto et al, 2018;Bellofatto et al, 2021), environmental, social and corporate governance (ESG) exposure (D'Hondt, Merli, & Roger, 2022) and predicting investor sentiment (D'Hondt & Roger, 2017) and their future returns (D'Hondt, De Winne, & Merli, 2021).…”

“…10 10 Descriptive statistics are reported in Section 3, but only for the variables that are used in the study of the gender gap in subjective financial literacy of spouses. Descriptive statistics on all variables can be found in Broihanne and Orkut (2018). …”

A Study on the Impact of Demographics Variable on Mental Accounting Bias of Individual Investors in Financial Decision

“…Each element of mental accounting goes against the fungibility economic tenet. The fungible theory states that the source of wealth growth-whether it comes from a regular wage, savings earnings, or winning bets-should not have an impact on subsequent spending habits (Broihanne, 2018). Mentally dividing up economic categories is referred to as mental accounting Antonides, G. (2011).…”