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Trauma and investment horizon: Evidence from a representative China equity investor behavior survey

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Listed:
  • Guan, Ruiqi
  • Jacoby, Gady
  • Lu, Xiaomeng
  • Wan, Fang
  • Zhang, Qi

Abstract

Results from a large sample of individual Chinese investors demonstrate that they were more likely to trade stocks for short-term speculation after experiencing trauma such as natural disasters, serious illness, or death in their immediate family. They exhibited higher impulsivity, a greater desire for immediate gratification, a greater willingness to follow trends, and more risk-taking behaviors as a result of the trauma experience. The data also show that the negative relation between trauma experience and investment horizon is less pronounced for older and married individuals.

Suggested Citation

  • Guan, Ruiqi & Jacoby, Gady & Lu, Xiaomeng & Wan, Fang & Zhang, Qi, 2023. "Trauma and investment horizon: Evidence from a representative China equity investor behavior survey," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005251
    DOI: 10.1016/j.frl.2023.104153
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