<scp>DEEP</scp> sleep: The impact of sleep on financial risk taking

Nofsinger, John R.; Shank, Corey A.

doi:10.1002/rfe.1034

Cited by 11 publications

(8 citation statements)

References 99 publications

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“…Second, we use the dynamic experiments for estimating preferences (DEEP) methodology (Toubia et al , 2013) to measure three types of financial risk preferences and two types of financial time preferences [10]. DEEP has been used in previous experimental research, such as Nofsinger and Shank (2018) and Patterson and Shank (2020). At the beginning of the DEEP risk and time surveys, the subjects are given instructions about the tasks and are asked to answer a few simple questions to ensure that they understand the various aspects of the study and topics such as probabilities and the time value of money.…”

Section: Methodsmentioning

confidence: 99%

The relationship between psychopathy and financial risk and time preferences

Shank

Dupoyet

Durand

et al. 2020

SEF

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Purpose The purpose of this paper is to examine the relationship between psychopathy and its underlying traits and financial risk and time preferences. Design/methodology/approach The authors measure risk and time preferences using both the cumulative prospect theory and quasi-hyperbolic time discounting in a sample of business majors. The Psychopathic Personality Inventory – Revised test is then used to measure the global psychopathy and eight primary and two secondary traits of the sample of business majors. The measures of psychopathy are used as explanatory variables to model variation in subjects’ time and risk preferences. Findings The authors find that the overall score on the continuum of psychopathy is positively related to the linearity of the cumulative prospective utility function. A breakdown of psychopathy into its secondary and primary traits shows a more complex relation. For example, the secondary trait of self-centered impulsivity is statistically significant in models of financial risk preference determinants under the cumulative prospect theory. The authors find that the primary traits of self-centered impulsivity and stress immunity are related to a higher time preference discount rate under quasi-hyperbolic time preferences. Originality/value This paper adds to the literature on personality and financial decisions and highlights the importance of psychopathy in finance.

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Section: Methodsmentioning

confidence: 99%

The relationship between psychopathy and financial risk and time preferences

Shank

Dupoyet

Durand

et al. 2020

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“…Disruptions in sleep patters due to DST impair human performance, impacting on behavior and activity. Kamstra et al [33] argue that sleep imbalances following DST transitions lead to lower stock market performance while Nofsinger and Shank [47] show that reduced sleep quality impacts financial decision making, as agents become more susceptible to present bias and have greater discount rates. Kountouris and Remoundou [39] find that transitions lead to lower self-reported life satisfaction and worse mood, using data from the German Socioeconomic Panel.…”

Section: Daylight Saving Time and Sleepmentioning

confidence: 99%

An Assessment of the Relationship Between Daylight Saving Time, Disruptions in Sleep Patterns and Dwelling Fires

Kountouris

2020

Fire Technol

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Residential fires pose threats to living environments, generating costs to health and property. Understanding the roles of human behavior and social organization in determining fire occurrence is important for developing strategies to manage fire risk. This paper tests the impact of daylight saving time (DST) transitions on dwelling fire occurrence. DST transitions affect sleep patterns, impairing human cognitive and motor performance, potentially influencing the incidence of dwelling fires. Employing a regression discontinuity design with time as the running variable and using data from over 260,000 primary dwelling fires that took place in the U.K. over 8 years we do not find evidence suggesting that DST transitions impact on dwelling fire occurrence. For both the start of DST and end of DST transitions, estimated effects is quantitatively small and statistically insignificant. Results suggest that disruptions in sleep patterns induced by DST are not a driver of dwelling fires in the U.K.

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“…So far, there has been no study about sleep deficiency and DMC, but some studies have implied that irrational risk seeking after being in a state of mental fatigue may be related to the reduction of core decision-making skills 14 . For example, Venkatraman et al 15 found that the tendency to take risks after sleep deprivation was significantly related to enhanced ventromedial prefrontal cortex activity and to a decrease in anterior insula activation that occurred during the brain’s experience of reward outcomes.…”

Section: Introductionmentioning

confidence: 99%

Need for cognition moderates the impairment of decision making caused by nightshift work in nurses

Peng

Zhang

et al. 2022

Sci Rep

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The current study explores the effect of nightshift work on the decision-making competence and performance of the Iowa Gambling Task (IGT) and analyzes whether individual differences in the need for cognition (NFC) can moderate this effect. A total of 107 female nurses were recruited to complete the decision-making competence scale and IGT at two times, after a night shift and after a day shift. The results revealed that the IGT scores and decision-making competence of nurses after nightshift work significantly declined, and also that the decrease in decision-making competence was related to the nurses’ performance of the IGT. Additionally, the decreasing degree of IGT and decision-making competence scores of the high-NFC group were significantly lower than those of the low-NFC group after nightshift work. In can be concluded that the decrease in decision-making competence which was related with poor decision-making due to nightshift work. NFC moderated the effect of nightshift work on decision-making.

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DEEP sleep: The impact of sleep on financial risk taking

Cited by 11 publications

References 99 publications

The relationship between psychopathy and financial risk and time preferences

The relationship between psychopathy and financial risk and time preferences

An Assessment of the Relationship Between Daylight Saving Time, Disruptions in Sleep Patterns and Dwelling Fires

Need for cognition moderates the impairment of decision making caused by nightshift work in nurses

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