What Is the Role of FoMO in Individual Investment Behavior? The Relationship among FoMO, Involvement, Engagement, and Satisfaction

Argan, Metin; Altundal, Vahdet; Argan, Mehpare Tokay

doi:10.1080/10669868.2022.2141941

Cited by 8 publications

(6 citation statements)

References 86 publications

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“…Our findings add to the emerging evidence from stock market participant surveys (Argan et al, 2022; Gupta et al, 2022), Google search data, stock market trading, and margin use data (Bonaparte & Fabozzi, 2021) documenting the relationship between FOMO and stock market participation. In particular, FOMO has been found to strongly motivate stock market participation among young adults (Bonaparte & Fabozzi, 2021), causing concern given their known vulnerability to problem gambling (Barnes et al, 2010; Williams et al, 2012).…”

Section: Discussionsupporting

confidence: 71%

Fear of Missing out on Financial Gains: Associations Between Fear of Missing Out, Problem Gambling, and Speculative Trading in College Students

Song,

Graupensperger,

Lostutter

et al. 2024

Emerging Adulthood

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In recent years a fear of missing out (FOMO) on short-term monetary gains through speculative trading has been highlighted as a driving force of financial behaviors. Additionally, increasing evidence has likened speculative trading to gambling. The current study sought to determine whether financial FOMO is linked to stock market and cryptocurrency trading activities and problem gambling severity in both traditional gambling and financial trading domains, among a sample of 258 college students. Results of binomial regression and hurdle model analyses found that financial FOMO was linked to participation in stock market and cryptocurrency trading. Financial FOMO was also associated with problem gambling severity in traditional gambling and the presence of gambling problems in the stock market trading domain. Our results suggest that financial FOMO may be a salient risk factor of problem gambling in traditional gambling domains and, to a smaller degree, in the speculative trading domain among young adults.

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Section: Discussionsupporting

confidence: 71%

Fear of Missing out on Financial Gains: Associations Between Fear of Missing Out, Problem Gambling, and Speculative Trading in College Students

Song,

Graupensperger,

Lostutter

et al. 2024

Emerging Adulthood

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“…through FOMO-based advertising appeals (Hodkinson, 2016). FOMO and consumer behavior have a relationship in individual investment (Argan et al, 2022). One of the driving factors of FOMO is narcissism to show the products it has, to invoke admiration (Casale & Banchi, 2020).…”

Section: Role Fomo With Hedonismmentioning

confidence: 99%

Unveiling Consumer Affection: Exploring the Psychological Forces Driving Love and Willingness to Pay for Premium Laptop Brands

Nofrizal,

Aznuriyandi

et al. 2024

mem

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Premium laptop brands are increasingly loved by consumers, and despite the high prices, they are still willingness to pay. This study aims to determine the driving factors of consumer brand love and willingness to pay for premium laptop products. Psychological factors such as social status, Fear of Missing Out (FOMO), and Hedonism are driving factors. The survey technique was used to collect data on the answers of premium laptop consumer respondents using purposive sampling of 633 buyers of premium laptop products. Data analysis of data processing and presentation using Structural Equation Modeling using SmartPLS 4.0 software. The results showed that social status and Hedonism are driving factors for brand love and willingness to pay for premium laptop products. Next, FOMO feelings also cause hedonism, but cannot make customers willingness to pay (WTP). The role of brand love and hedonism can mediate social status and FOMO on willingness to pay.

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“…Gerrans et al (2023) retrieves a larger association between FoMO and crypto ownership than equity ownership for young age groups more likely to trade crypto assets. The concept of FoMo among retail investors has been explored by Argan et al (2023) to observe the relationship with investment engagement and by Park et al (2023) to analyze the relationship with market stability. Kaur et al (2023) observes the FoMo effect in crypto investment decisions as a driving factor for the herding effect in investment decisions, while Delfabbro et al (2021) delve into the psychological traits of cryptocurrency trading, among which FoMo represents one of the factors.…”

Section: Daily Leverage Effectmentioning

confidence: 99%

A comparison of cryptocurrency volatility-benchmarking new and mature asset classes

Brini,

Lenz

2024

Financ Innov

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The paper analyzes the cryptocurrency ecosystem at both the aggregate and individual levels to understand the factors that impact future volatility. The study uses high-frequency panel data from 2020 to 2022 to examine the relationship between several market volatility drivers, such as daily leverage, signed volatility and jumps. Several known autoregressive model specifications are estimated over different market regimes, and results are compared to equity data as a reference benchmark of a more mature asset class. The panel estimations show that the positive market returns at the high-frequency level increase price volatility, contrary to what is expected from the classical financial literature. We attributed this effect to the price dynamics over the last year of the dataset (2022) by repeating the estimation on different time spans. Moreover, the positive signed volatility and negative daily leverage positively impact the cryptocurrencies’ future volatility, unlike what emerges from the same study on a cross-section of stocks. This result signals a structural difference in a nascent cryptocurrency market that has to mature yet. Further individual-level analysis confirms the findings of the panel analysis and highlights that these effects are statistically significant and commonly shared among many components in the selected universe.

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What Is the Role of FoMO in Individual Investment Behavior? The Relationship among FoMO, Involvement, Engagement, and Satisfaction

Cited by 8 publications

References 86 publications

Fear of Missing out on Financial Gains: Associations Between Fear of Missing Out, Problem Gambling, and Speculative Trading in College Students

Fear of Missing out on Financial Gains: Associations Between Fear of Missing Out, Problem Gambling, and Speculative Trading in College Students

Unveiling Consumer Affection: Exploring the Psychological Forces Driving Love and Willingness to Pay for Premium Laptop Brands

A comparison of cryptocurrency volatility-benchmarking new and mature asset classes

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