Investor happiness

Merkle, Christoph; Egan, Daniel; Davies, Greg B.

doi:10.1016/j.joep.2015.05.007

Cited by 20 publications

(5 citation statements)

References 57 publications

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“…Happiness may positively influence investment decisions, although it is not statistically significant. Happy people are more optimistic about the future and more confident in making investment decisions [20,21]. However, this effect is not statistically significant, and people tend to ignore the future when making investment decisions [22].…”

Section: Resultsmentioning

confidence: 99%

Five Basic Human Emotions and Investment Decisions on Generation Z in Surabaya-Indonesia

Sutejo,

Sumiati,

Wijayanti

et al. 2023

Advances in Economics, Business and Management Research

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The impact of the five basic human emotions on investment decisionmaking, which focuses specifically on Generation Z investors in Surabaya, Indonesia, is investigated in this study. The research sample includes 180 Generation Z respondents with prior investing experience. To test the hypotheses, Amos used structural equation modeling (SEM). Exogenous variables are the five basic emotions (happiness, hope, anger, sadness, and fear), and endogenous variable is investment decision. According to the study findings, only two basic human emotions, anger and hope, have a significant influence on investment decisions among Generation Z investors in Surabaya. However, the remaining three primary emotions, happiness, sadness, and fear, have no significant impact on investment decisions. As a result, investors must be mindful of their emotions, particularly during times of anger and hope, to make more accurate investment decisions.

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Section: Resultsmentioning

confidence: 99%

Five Basic Human Emotions and Investment Decisions on Generation Z in Surabaya-Indonesia

Sutejo,

Sumiati,

Wijayanti

et al. 2023

Advances in Economics, Business and Management Research

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“…An early work about investor happiness has been the study of Merkle et al (2015). To be more precise, they use a panel survey of brokerage clients at a UK bank for the purposes of examining investor happiness.…”

Section: Studies About Investment Decisions Linked With Happiness And...mentioning

confidence: 99%

Twitter‘s happiness sentiment index impacts on financial markets: an integrated overview of empirical findings

Kyriazis¹

2023

Bulletin of Applied Economics

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This survey paper investigates the empirical findings of academic work that explores the nexus between the highly innovative Twitter happiness sentiment index and a range of financial assets. An integrated overview of econometric outcomes and the relevant investment policy implications are provided. It is revealed that investor happiness reinforces the safe haven abilities of gold. Moreover, major stock indices are highly influenced by the happiness index especially at higher quantiles. Reverse causality between the happiness index and stock indices is also detected but in a weaker level. This survey contributes to better understanding investment decisions based on behavioural finance and provides evidence about the nexus of investor sentiment estimation with the financial sector nowadays. JEL Classification numbers: G15, G40, Q02. Keywords: Investor happiness, Investor sentiment, Twitter, Survey, Gold, Stock prices.

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“…Investors tend to experience life satisfaction when they feel good about their investment endeavours (Diener, 2000). Merkle et al (2015) found that investors tend to be happy when they achieve investment success through active decision making rather than passive decision making. Diener and Ryan (2009) state that individuals compare themselves with others to establish whether or not their lives are satisfactory.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Ultimately, investor risk-taking behaviour and perception, life satisfaction, and demographics all contribute towards establishing an investor's risk tolerance and overall financial behaviour (Dickason, 2017;Diener & Ryan, 2009; J. Grable & Joo, 2000;Merkle et al, 2015;Vanguard, 2019). Therefore, it is important for investors and investment companies to be aware of these factors and how risk tolerance can influence investors' financial endeavours.…”

Section: Literature Reviewmentioning

confidence: 99%

A structural equation model of financial risk tolerance in South Africa

Ferreira-Schenk

Dickason-Koekemoer

2020

Cogent Business & Management

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Modelling investor behaviour in the South African context is important for investment companies to profile their clients. Various factors can influence the risk tolerance of investors. For the purpose of this research article, the emphasis was placed on demographics, life satisfaction and how risk-taking behaviour and perception in several life domains influences risk tolerance. An electronic questionnaire was distributed to over 4 000 investors throughout South Africa. The final sample size was 1 065. Age and gender were found to significantly influence investor risk tolerance. A negative relationship was found between age and risk tolerance, indicative that risk tolerance decreases with age. Life satisfaction did also significantly contribute to predicting investor risk tolerance. The development of this risk tolerance structural equation model is unique in its existence, as it is the first model to incorporate demographics, life satisfaction, risk-taking behaviour and perception, and risk tolerance level in the South African context. As a result, these findings will make a significant contribution to the way financial investment companies profile their clients.

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Investor happiness

Cited by 20 publications

References 57 publications

Five Basic Human Emotions and Investment Decisions on Generation Z in Surabaya-Indonesia

Five Basic Human Emotions and Investment Decisions on Generation Z in Surabaya-Indonesia

Twitter‘s happiness sentiment index impacts on financial markets: an integrated overview of empirical findings

A structural equation model of financial risk tolerance in South Africa

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