Abstract
This article explores the relation between individual well-being, risky decision-making, susceptibility to cognitive biases and investor beliefs about investing. A survey of one hundred and two individuals revealed that those with higher satisfaction with life are more prone to taking risks. In a loss frame, participants who were most likely to take a gamble had higher levels of psychological, social and overall well-being. Lower levels of satisfaction with life were found to impact the susceptibility of the reflection effect cognitive bias. In addition to this, well-being was found to be associated with investment beliefs, particularly those concerning diversification, the need to be alert and active, and the risk/return trade-off.
| Original language | English |
|---|---|
| Pages (from-to) | 493-527 |
| Number of pages | 35 |
| Journal | Accounting & Finance |
| Volume | 58 |
| Issue number | S1 |
| DOIs | |
| Publication status | Published - Nov 2018 |
Keywords
- Well-being
- Risk taking
- Cognitive biases
- Decision-making
- Positive psychology