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The Role of Fear of Missing out (FOMO), Loss Aversion, and Herd Behavior in Gold Investment Decisions: A Study in the Vietnamese Market

Author

Listed:
  • Xuan Hung Nguyen

    (School of Trade and International Economics, National Economics University, 207 Giai Phong, Hai Ba Trung, Hanoi 100000, Vietnam)

  • Dieu Anh Bui

    (School of Advanced Education Programs, National Economics University, 207 Giai Phong, Hai Ba Trung, Hanoi 100000, Vietnam)

  • Nam Anh Le

    (School of Advanced Education Programs, National Economics University, 207 Giai Phong, Hai Ba Trung, Hanoi 100000, Vietnam)

  • Quynh Trang Nguyen

    (School of Advanced Education Programs, National Economics University, 207 Giai Phong, Hai Ba Trung, Hanoi 100000, Vietnam)

Abstract

This study investigates the influence of FOMO, loss aversion, and herd behavior on gold investment decisions in the Vietnamese market. Employing data collected from 727 investors and the Partial Least Squares Structural Equation Modeling (PLS-SEM) method, the analysis results confirm the pivotal role of FOMO, with both direct and indirect impacts on gold investment decisions. Notably, both loss aversion and herd behavior positively influence FOMO, thereby indirectly encouraging relatively hasty and inadequately considered investment decisions. The study also finds that FOMO has a negative relationship with anticipated regret but is positively correlated with subjective expected pleasure. Furthermore, as determined through Multi-Group Analysis (MGA), psychological messages featuring “self-decision” or “risk warning” demonstrate a significant moderating role, potentially reducing or enhancing the influence of FOMO on investment decisions. These findings contribute to enriching behavioral finance theory and provide an empirical basis for developing effective risk management policies and gold market regulation aimed at mitigating the negative impacts of FOMO.

Suggested Citation

  • Xuan Hung Nguyen & Dieu Anh Bui & Nam Anh Le & Quynh Trang Nguyen, 2025. "The Role of Fear of Missing out (FOMO), Loss Aversion, and Herd Behavior in Gold Investment Decisions: A Study in the Vietnamese Market," IJFS, MDPI, vol. 13(3), pages 1-20, September.
    • Handle: RePEc:gam:jijfss:v:13:y:2025:i:3:p:175-:d:1749415
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    References listed on IDEAS

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