IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v10y2023i1d10.1057_s41599-023-01870-0.html
   My bibliography  Save this article

Group norms and policy norms trigger different autonomous motivations for Chinese investors in cryptocurrency investment

Author

Listed:
  • Yongzhi Gong

    (Southwestern University of Finance and Economics)

  • Xiaofei Tang

    (Southwestern University of Finance and Economics)

  • En-Chung Chang

    (Renmin University of China)

Abstract

Cryptocurrency has become a hot area of global investment. Despite the increasing regulation of cryptocurrencies, some investors are still obsessed with investing in cryptocurrencies, and the reasons behind this are worth exploring. Emerging studies from a cryptocurrency behavioural perspective demonstrate that investments in cryptocurrency are influenced by a variety of factors, but ignore the objective factor of the political environment. Based on social norms theory, this article explores the impact of group norms and policy norms on Chinese investors’ autonomous motivation to invest in cryptocurrencies. This article adopts a questionnaire and investigates 727 Chinese investors. Research has found that: (1) Cryptocurrency investment is influenced by group norms and policy norms, and autonomous motivation serves as a mediator in the process. Group norms promote autonomous motivation among investors, thereby increasing cryptocurrency investment. Conversely, policy norms inhibit investors’ autonomous motivation and reduce cryptocurrency investment. (2) Cryptocurrency knowledge plays a moderating role between social norms and autonomous motivation. The moderating effects of investors’ subjective and objective knowledge of cryptocurrency in the model have no significant differences, showing a consistent suppressing effect on autonomous motivation. The findings suggest governments should focus on both regulations and public opinion. On the one hand, the government needs to strengthen and improve the laws and regulations related to cryptocurrencies. On the other hand, the government also needs to strengthen social supervision and exercise necessary control in the dissemination of cryptocurrency information.

Suggested Citation

  • Yongzhi Gong & Xiaofei Tang & En-Chung Chang, 2023. "Group norms and policy norms trigger different autonomous motivations for Chinese investors in cryptocurrency investment," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
  • Handle: RePEc:pal:palcom:v:10:y:2023:i:1:d:10.1057_s41599-023-01870-0
    DOI: 10.1057/s41599-023-01870-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-023-01870-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41599-023-01870-0?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.

    References listed on IDEAS

    as
    1. Akyildirim, Erdinc & Aysan, Ahmet Faruk & Cepni, Oguzhan & Darendeli, S. Pinar Ceyhan, 2021. "Do investor sentiments drive cryptocurrency prices?," Economics Letters, Elsevier, vol. 206(C).
    2. Albayati, Hayder & Kim, Suk Kyoung & Rho, Jae Jeung, 2020. "Accepting financial transactions using blockchain technology and cryptocurrency: A customer perspective approach," Technology in Society, Elsevier, vol. 62(C).
    3. David Iheke Okorie, 2020. "Correction to: Could stock hedge Bitcoin risk(s) and vice versa?," Digital Finance, Springer, vol. 2(1), pages 137-142, September.
    4. Christian Nedu Osakwe & Michael D. Dzandu & Hayford Amegbe & Mohammed Hersi Warsame & Thurasamy Ramayah, 2022. "A two-country study on the psychological antecedents to cryptocurrency investment decision-making," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 25(4), pages 302-323, October.
    5. Quoc Trung Pham & Hiep Hai Phan & Matteo Cristofaro & Sanjay Misra & Pier Luigi Giardino, 2021. "Examining the Intention to Invest in Cryptocurrencies: An Extended Application of the Theory of Planned Behavior on Italian Independent Investors," International Journal of Applied Behavioral Economics (IJABE), IGI Global, vol. 10(3), pages 59-79, July.
    6. Ghulam Mustafa & Noorina Ali, 2019. "Rewards, autonomous motivation and turnover intention: Results from a non-Western cultural context," Cogent Business & Management, Taylor & Francis Journals, vol. 6(1), pages 1676090-167, January.
    7. Almeida, José & Gonçalves, Tiago Cruz, 2023. "A systematic literature review of investor behavior in the cryptocurrency markets," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).
    8. Guégan, Dominique & Renault, Thomas, 2021. "Does investor sentiment on social media provide robust information for Bitcoin returns predictability?," Finance Research Letters, Elsevier, vol. 38(C).
    9. van Rooij, Maarten & Lusardi, Annamaria & Alessie, Rob, 2011. "Financial literacy and stock market participation," Journal of Financial Economics, Elsevier, vol. 101(2), pages 449-472, August.
    10. Shawn Cole & Anna Paulson & Gauri Kartini Shastry, 2014. "Smart Money? The Effect of Education on Financial Outcomes," The Review of Financial Studies, Society for Financial Studies, vol. 27(7), pages 2022-2051.
    11. Henry, Christopher S. & Huynh, Kim P. & Nicholls, Gradon, 2018. "Bitcoin awareness and usage in Canada," Journal of Digital Banking, Henry Stewart Publications, vol. 2(4), pages 311-337, May.
    12. Amal Dabbous & May Merhej Sayegh & Karine Aoun Barakat, 2022. "Understanding the adoption of cryptocurrencies for financial transactions within a high-risk context," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 23(4), pages 349-367, May.
    13. Bouri, Elie & Gupta, Rangan & Roubaud, David, 2019. "Herding behaviour in cryptocurrencies," Finance Research Letters, Elsevier, vol. 29(C), pages 216-221.
    14. Titman, Sheridan & Wei, K. C. John & Xie, Feixue, 2004. "Capital Investments and Stock Returns," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 39(4), pages 677-700, December.
    15. Inès Chouk & Zied Mani, 2019. "Factors for and against resistance to smart services: role of consumer lifestyle and ecosystem related variables," Post-Print hal-03711784, HAL.
    16. Shahzad, Fakhar & Xiu, GuoYi & Wang, Jian & Shahbaz, Muhammad, 2018. "An empirical investigation on the adoption of cryptocurrencies among the people of mainland China," Technology in Society, Elsevier, vol. 55(C), pages 33-40.
    17. Park, C Whan & Mothersbaugh, David L & Feick, Lawrence, 1994. "Consumer Knowledge Assessment," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(1), pages 71-82, June.
    18. Papadamou, Stephanos & Kyriazis, Nikolaos A. & Tzeremes, Panayiotis & Corbet, Shaen, 2021. "Herding behaviour and price convergence clubs in cryptocurrencies during bull and bear markets," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).
    19. Gurdgiev, Constantin & O’Loughlin, Daniel, 2020. "Herding and anchoring in cryptocurrency markets: Investor reaction to fear and uncertainty," Journal of Behavioral and Experimental Finance, Elsevier, vol. 25(C).
    20. Nazifi, Amin & Murdy, Samantha & Marder, Ben & Gäthke, Jana & Shabani, Bardia, 2021. "A Bit(coin) of happiness after a failure: An empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool," Journal of Business Research, Elsevier, vol. 124(C), pages 494-505.
    21. Yousaf, Imran & Yarovaya, Larisa, 2022. "Herding behavior in conventional cryptocurrency market, non-fungible tokens, and DeFi assets," Finance Research Letters, Elsevier, vol. 50(C).
    22. Angerer, Martin & Hoffmann, Christian Hugo & Neitzert, Florian & Kraus, Sascha, 2021. "Objective and subjective risks of investing into cryptocurrencies," Finance Research Letters, Elsevier, vol. 40(C).
    23. David Iheke Okorie, 2020. "Could stock hedge Bitcoin risk(s) and vice versa?," Digital Finance, Springer, vol. 2(1), pages 117-136, September.
    24. Breidbach, Christoph F. & Tana, Silviana, 2021. "Betting on Bitcoin: How social collectives shape cryptocurrency markets," Journal of Business Research, Elsevier, vol. 122(C), pages 311-320.
    25. Blau, Benjamin M., 2018. "Price dynamics and speculative trading in Bitcoin," Research in International Business and Finance, Elsevier, vol. 43(C), pages 15-21.
    26. Christopher Henry & Kim Huynh & Gradon Nicholls, 2018. "Bitcoin Awareness and Usage in Canada: An Update," Staff Analytical Notes 2018-23, Bank of Canada.
    27. Ulrike Malmendier & Stefan Nagel, 2011. "Depression Babies: Do Macroeconomic Experiences Affect Risk Taking?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(1), pages 373-416.
    28. Jens Mattke & Christian Maier & Lea Reis & Tim Weitzel, 2021. "Bitcoin investment: a mixed methods study of investment motivations," European Journal of Information Systems, Taylor & Francis Journals, vol. 30(3), pages 261-285, May.
    29. Palamida, Eftychia & Papagiannidis, Savvas & Xanthopoulou, Despoina, 2018. "Linking young individuals' capital to investment intentions: Comparing two cultural backgrounds," European Management Journal, Elsevier, vol. 36(3), pages 392-407.
    30. Anamika & Madhumita Chakraborty & Sowmya Subramaniam, 2023. "Does Sentiment Impact Cryptocurrency?," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 24(2), pages 202-218, April.
    31. Catherine C. Eckel & Sascha C. Füllbrunn, 2015. "Thar SHE Blows? Gender, Competition, and Bubbles in Experimental Asset Markets," American Economic Review, American Economic Association, vol. 105(2), pages 906-920, February.
    32. Boris Bartikowski & Fernando Fastoso & Heribert Gierl, 2021. "How Nationalistic Appeals Affect Foreign Luxury Brand Reputation: A Study of Ambivalent Effects," Journal of Business Ethics, Springer, vol. 169(2), pages 261-277, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Muhammad Farrukh Shahzad & Shuo Xu & Weng Marc Lim & Muhammad Faisal Hasnain & Shahneela Nusrat, 2024. "Cryptocurrency awareness, acceptance, and adoption: the role of trust as a cornerstone," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Almeida, José & Gonçalves, Tiago Cruz, 2023. "A systematic literature review of investor behavior in the cryptocurrency markets," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).
    2. Nils Brouwer & Jakob de Haan, 2024. "What Drives Households’ Knowledge about Cryptocurrencies?," Working Papers 799, DNB.
    3. Dunbar, Kwamie & Owusu-Amoako, Johnson, 2023. "Predictability of crypto returns: The impact of trading behavior," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).
    4. Bennett, Donyetta & Mekelburg, Erik & Williams, T.H., 2023. "BeFi meets DeFi: A behavioral finance approach to decentralized finance asset pricing," Research in International Business and Finance, Elsevier, vol. 65(C).
    5. Chunling Li & Nosherwan Khaliq & Leslie Chinove & Usama Khaliq & József Popp & Judit Oláh, 2023. "Cryptocurrency Acceptance Model to Analyze Consumers’ Usage Intention: Evidence From Pakistan," SAGE Open, , vol. 13(1), pages 21582440231, March.
    6. Colombo, Jéfferson Augusto & Yarovaya, Larisa, 2024. "Are crypto and non-crypto investors alike? Evidence from a comprehensive survey in Brazil," Technology in Society, Elsevier, vol. 76(C).
    7. Baker, Scott R. & Johnson, Stephanie & Kueng, Lorenz, 2024. "Financial returns to household inventory management," Journal of Financial Economics, Elsevier, vol. 151(C).
    8. Mario Arias-Oliva & Jorge de Andrés-Sánchez & Jorge Pelegrín-Borondo, 2021. "Fuzzy Set Qualitative Comparative Analysis of Factors Influencing the Use of Cryptocurrencies in Spanish Households," Mathematics, MDPI, vol. 9(4), pages 1-19, February.
    9. Kaustia, Markku & Conlin, Andrew & Luotonen, Niilo, 2023. "What drives stock market participation? The role of institutional, traditional, and behavioral factors," Journal of Banking & Finance, Elsevier, vol. 148(C).
    10. Fujiki, Hiroshi, 2020. "Who adopts crypto assets in Japan? Evidence from the 2019 financial literacy survey," Journal of the Japanese and International Economies, Elsevier, vol. 58(C).
    11. Arpaci, Ibrahim, 2023. "Predictors of financial sustainability for cryptocurrencies: An empirical study using a hybrid SEM-ANN approach," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    12. Ed Saiedi & Anders Broström & Felipe Ruiz, 2021. "Global drivers of cryptocurrency infrastructure adoption," Small Business Economics, Springer, vol. 57(1), pages 353-406, June.
    13. Delis, Manthos D. & Dioikitopoulos, Evangelos V. & Ongena, Steven, 2023. "Population diversity and financial risk-taking," Journal of Banking & Finance, Elsevier, vol. 151(C).
    14. Mohamad, Azhar & Stavroyiannis, Stavros, 2022. "Do birds of a feather flock together? Evidence from time-varying herding behaviour of bitcoin and foreign exchange majors during Covid-19," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 80(C).
    15. Bouteska, Ahmed & Mefteh-Wali, Salma & Dang, Trung, 2022. "Predictive power of investor sentiment for Bitcoin returns: Evidence from COVID-19 pandemic," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    16. Bender, Svetlana & Choi, James J. & Dyson, Danielle & Robertson, Adriana Z., 2022. "Millionaires speak: What drives their personal investment decisions?," Journal of Financial Economics, Elsevier, vol. 146(1), pages 305-330.
    17. Wang, Yi & Niu, Geng & Zhou, Yang & Lu, Weijie, 2023. "Broadband internet and stock market participation," International Review of Financial Analysis, Elsevier, vol. 85(C).
    18. Al-Omoush, Khaled Saleh & Gomez-Olmedo, Ana M. & Funes, Andrés Gómez, 2024. "Why do people choose to continue using cryptocurrencies?," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    19. Christelis, Dimitris & Dobrescu, Loretti I. & Motta, Alberto, 2020. "Early life conditions and financial risk-taking in older age," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    20. John Y. Campbell, 2016. "Restoring Rational Choice: The Challenge of Consumer Financial Regulation," American Economic Review, American Economic Association, vol. 106(5), pages 1-30, May.

    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:pal:palcom:v:10:y:2023:i:1:d:10.1057_s41599-023-01870-0. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    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.