IDEAS home Printed from https://ideas.repec.org/a/taf/hbhfxx/v19y2018i1p89-100.html
   My bibliography  Save this article

The Role of Regulatory Focus and Information in Investment Choice: Some Evidence Using Visual Cues to Frame Regulatory Focus

Author

Listed:
  • Soo Yeong Ewe
  • Ferdinand A. Gul
  • Christina Kwai Choi Lee
  • Chia Yen Yang

Abstract

This study examines the role of regulatory focus and additional information on risk preferences in investment choice using an experimental approach. The findings reveal that situational regulatory focus plays an important role in influencing investment choice. In particular, a congruent promotion-focused image and related message increases risk-taking behavior in terms of choice for stocks rather than fixed deposits, whereas the reverse is true for a congruent prevention-focused image and related message. However, this relationship depends on the amount of information available during the decision-making process, and regulatory focus has a stronger impact on investment choice under the condition without additional financial information.

Suggested Citation

  • Soo Yeong Ewe & Ferdinand A. Gul & Christina Kwai Choi Lee & Chia Yen Yang, 2018. "The Role of Regulatory Focus and Information in Investment Choice: Some Evidence Using Visual Cues to Frame Regulatory Focus," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 19(1), pages 89-100, January.
    • Handle: RePEc:taf:hbhfxx:v:19:y:2018:i:1:p:89-100
    DOI: 10.1080/15427560.2017.1373283
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15427560.2017.1373283
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15427560.2017.1373283?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sengupta, Atri & Deb, Soumya Guha & Mittal, Shashank, 2021. "The underlying motivational process behind portfolio diversification choice decisions of individual investors: An experimental design," Journal of Behavioral and Experimental Finance, Elsevier, vol. 29(C).
    2. Maren Hartmann & Barbara E. Weißenberger, 2024. "Information overload research in accounting: a systematic review of the literature," Management Review Quarterly, Springer, vol. 74(3), pages 1619-1667, September.
    3. Kincaid, Paula A. & Short, Jeremy C. & Wolfe, Marcus T., 2022. "Got ink, get paid? Exploring the impact of tattoo visibility on crowdfunding performance," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    4. Ma, Alfred & Shu, Tse-Mei & Chen, Jieyu & Chau, Man Foon, 2024. "Does the investment performance measure matter? A perspective from regulatory focus theory," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).
    5. Ewe, Soo Yeong & Lee, Christina Kwai Choi & Watabe, Motoki, 2020. "Prevention focus and prior investment failure in financial decision making," Journal of Behavioral and Experimental Finance, Elsevier, vol. 26(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:hbhfxx:v:19:y:2018:i:1:p:89-100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/hbhf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.