scholarly journals Emotions and Exposure to Risk: the Influence of Positive and Negative Emotions on Portfolio Decisions

2021 ◽  
pp. 25-62
Author(s):  
Ibrahim Filiz

This experimental study addresses the question of whether positive and negative emotions have an influence on diversification behaviour, and it reveals that only a small part of subjects take rational decisions and always choose the optimal portfolio. In addition, the study shows that the mood of subjects has an influence on their portfolio decisions and thus also on their exposure to risk. The average risk of the portfolio - measured against the standard deviation of the returns - is lower in the treatment entitled ‘neutral’ than in the treatments entitled ‘positive’ and ‘negative’. JEL classification numbers: C91, D81, G11, G41. Keywords: Emotions, Risk exposure, Laboratory experiment, Portfolio choice, Investment decisions, Investor rationality.

2021 ◽  
Vol 34 (132) ◽  
pp. 21-32
Author(s):  
F Alirezaee ◽  
M Mardani Hamooleh ◽  
N Seyedfatemi ◽  
M Ghaljeh ◽  
SH Haghani ◽  
...  

2021 ◽  
pp. 001946622098702
Author(s):  
Swati Prasad ◽  
Ravi Kiran ◽  
Rakesh Kumar Sharma

This study covers the gender-wise analysis of how behavioural factors and socio-economic factors along with the level of financial literacy influence investment decisions of Indian retail investors. Equally pertinent is to understand that will it have a different influence and bearing on males and females. Multivariate technique partial least squares-structural equation modelling (PLS-SEM) has been applied to develop the model and analyse the results. The study used a structured questionnaire for collecting data from retail investors. The findings of PLS-SEM show that in both genders, behavioural factors, socio-economic factors and financial literacy factors significantly affect investment decisions. However, the findings demonstrate that for women investors, the model is more effective. This study may be useful for prospective fund managers as, in many earlier studies, women are considered to be risk aversive. The results demonstrate that there is a need to target women, and the scenario today is not similar to the pre-existing ones. JEL Classification: G110, G4


Author(s):  
Lukasz D. Kaczmarek ◽  
Todd B. Kashdan ◽  
Maciej Behnke ◽  
Martyna Dziekan ◽  
Ewelina Matuła ◽  
...  

AbstractWhen individuals communicate enthusiasm for good events in their partners' lives, they contribute to a high-quality relationship; a phenomenon termed interpersonal capitalization. However, little is known when individuals are more ready to react enthusiastically to the partner's success. To address this gap, we examined whether positive and negative emotions boost or inhibit enthusiastic responses to partner's capitalization attempts (RCA). Participants (N = 224 individuals) responded to their partner's success. Before each capitalization attempt (operationalized as responses following the news that their partner won money in a game), we used video clips to elicit positive (primarily amusement) or negative (primarily anger) or neutral emotions in the responder. We recorded emotional valence, smiling intensity, verbal RCA, and physiological reactivity. We found indirect (but not direct) effects such that eliciting positive emotions boosted and negative emotions inhibited enthusiastic RCA (smiling intensity and enthusiastic verbal RCA). These effects were relatively small and mediated by emotional valence and smiling intensity but not physiological reactivity. The results offer novel evidence that positive emotions fuel the capitalization process.


2020 ◽  
Vol 28 (4) ◽  
pp. 349-360
Author(s):  
Syed Muhammad Fazal-e-Hasan ◽  
Hormoz Ahmadi ◽  
Gary Mortimer ◽  
Harjit Sekhon ◽  
Husni Kharouf ◽  
...  

Semiotica ◽  
2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Amitash Ojha ◽  
Charles Forceville ◽  
Bipin Indurkhya

Abstract Both mainstream and art comics often use various flourishes surrounding characters’ heads. These so-called “pictorial runes” (also called “emanata”) help convey the emotional states of the characters. In this paper, using (manipulated) panels from Western and Indian comic albums as well as neutral emoticons and basic shapes in different colors, we focus on the following two issues: (a) whether runes increase the awareness in comics readers about the emotional state of the character; and (b) whether a correspondence can be found between the types of runes (twirls, spirals, droplets, and spikes) and specific emotions. Our results show that runes help communicate emotion. Although no one-to-one correspondence was found between the tested runes and specific emotions, it was found that droplets and spikes indicate generic emotions, spirals indicate negative emotions, and twirls indicate confusion and dizziness.


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