Unknown

Dataset Information

0

Prior perceived losses and investment objectives after stock market crisis: a moderated-mediation model of risk tolerance and loss aversion.


ABSTRACT: This study explores whether prior perceived losses affect investment objectives via loss aversion as a mediator and whether the indirect effect is moderated by risk tolerance in a moderated-mediation model. Using retail investors who witnessed a market crash in Bangladesh and experienced losses, the model is tested by employing regression analyses and conditional process. The analyses reveal that prior perceived losses indirectly affect investment objectives (earning a higher expected return and building a financial reserve for future expenses) via mediation of loss aversion. Moderated-mediation model shows that for high-risk-tolerant investors, prior perceived losses indirectly affect investors to invest more for achieving a higher expected return objective and less to achieving building a financial reserve for future expenses, via a low level of loss aversion. These suggest that risk-tolerant investors continue to invest to earn a higher expected return even though they experienced prior losses and are loss-averse.

Supplementary information

The online version contains supplementary material available at 10.1007/s43546-022-00259-6.

SUBMITTER: Khan MTI 

PROVIDER: S-EPMC9243710 | biostudies-literature |

REPOSITORIES: biostudies-literature

Similar Datasets

| S-EPMC4626086 | biostudies-literature
| S-EPMC9469992 | biostudies-literature
| S-EPMC10558715 | biostudies-literature
| S-EPMC7498032 | biostudies-literature
| S-EPMC6005484 | biostudies-literature
| S-EPMC10513304 | biostudies-literature
| S-EPMC4263686 | biostudies-literature
| S-EPMC7338884 | biostudies-literature
| S-EPMC9455286 | biostudies-literature
| S-EPMC7738547 | biostudies-literature