The impact of financial defence mechanisms and phantasy on risky investment intention

Abstract

Purpose The purpose of this paper is to investigate the relationship between defence mechanisms, one of the unconscious processes, and phantasy. In addition, the scale of financial defence mechanisms, which is a version of the defence mechanisms adapted to financial issues, has been developed and tested. Design/methodology/approach For this purpose, first, a pilot study was conducted for the financial defence mechanism scale. The data was collected 179 subjects in Turkey through online surveys with convenience sampling method between the dates of 6 March and 21 March 2020, and then additional data was collected in Turkey between the dates of 28 April and 14 June 2020. The total number of subjects is 644. The authors exploited IBM SPSS Statistics and AMOS for analysis. Exploratory factor analysis, ANOVA, Independent t-test and Correlation analysis were performed. In addition, confirmatory factor analysis was performed after additional data collection process with structural equation modelling. Findings As a result of the analyses, only two of the defence mechanisms (mature and neurotic) and three of the financial defence mechanisms (mature, neurotic and immature) were found to be positively correlated with phantasy, which is considered a determinant of financial bubbles. In addition, a positive relationship was found between risky investment intention and two of the defence mechanisms (immature and neurotic) and three of the financial defence mechanisms (mature, immature and neurotic). Originality/value The study is unique due to its findings and developed scale. The findings are valuable in that the theoretically alleged relations were also obtained empirically.

Evaluation of investment preference with phantasy, emotional intelligence, confidence, trust, financial literacy and risk preference

“…Even Sadia et al. (2018) and Aren and Hamamcı (2021c, e) emphasize that values above 0.55 are acceptable. In this framework, it was seen that the fit index values obtained are at a very good level.…”

“…Risk preference is a concept associated with risk perception that leads individual to risk-taking or risk avoidance behavior (Spinks et al, 2021). In other words, risk preference is a range of preferences whose one pole is risk avoidance and the other pole is risk-taking (or risk neutral) (Weber and Milliman, 1997;Ribes and Gonz alez-Pachon, 2021;Aren and Hamamcı, 2021c). It is also stated in the literature that it is used in the same mean as risk attitude (Korkmaz et al, 2021).…”

“…There is uncertainty in financial markets and the uncertainty cannot be calculated mathematically. In this case, emotions are involved in the evaluation process (Aren and Hamamcı, 2021c), and how and how much the risk is perceived becomes more important than calculating it.…”

The Moderating Effect of Subjective Financial Literacy on the Relationship between Coping Strategies and Financial Risk Tolerance

“…When evaluated according to threshold values indicated by Selim Aren et al (2021); Aren and Hamamcı (2022) and Sadia, Bekhor, and Polus (2018) it is seen that all goodness-of-fit indexes are at a very good level and acceptable. After confirmatory factor analyses, correlation analysis was performed to determine the relationship between the variables and the results are presented in Table 3.…”

The effect of individual cultural values and phantasy on risky investment intention

“…They provided evidence that phantasy is also a descriptor of risky investment intentions. Aren and Hamamcı (2021b) determined that defense mechanisms, which are unconscious processes, and…”