TY - JOUR
T1 - Do happy people make optimistic investors?
AU - Kaplanski, Guy
AU - Levy, Haim
AU - Veld, Christianus Henricus
AU - Veld-Merkoulova, Joulia Wiktorowna
PY - 2015/4/1
Y1 - 2015/4/1
N2 - Do happy people predict future risk and return differently from unhappy people, or do individuals rely only on economic facts? We survey investors on their subjective sentiment-creating factors, return and risk expectations, and investment plans. We find that noneconomic factors systematically affect return and risk expectations, where the return effect is more profound. Investment plans are also affected by noneconomic factors. Sports results and general feelings significantly affect predictions. Sufferers from seasonal affective disorder have lower return expectations in the autumn than in other seasons, supporting the winter blues hypothesis.
AB - Do happy people predict future risk and return differently from unhappy people, or do individuals rely only on economic facts? We survey investors on their subjective sentiment-creating factors, return and risk expectations, and investment plans. We find that noneconomic factors systematically affect return and risk expectations, where the return effect is more profound. Investment plans are also affected by noneconomic factors. Sports results and general feelings significantly affect predictions. Sufferers from seasonal affective disorder have lower return expectations in the autumn than in other seasons, supporting the winter blues hypothesis.
UR - http://www.scopus.com/inward/record.url?scp=84998591734&partnerID=8YFLogxK
U2 - 10.1017/S0022109014000416
DO - 10.1017/S0022109014000416
M3 - Article
VL - 50
SP - 145
EP - 168
JO - Journal of Financial and Quantitative Analysis
JF - Journal of Financial and Quantitative Analysis
SN - 0022-1090
IS - 1-2
ER -