IDEAS home Printed from https://ideas.repec.org/a/sae/fbbsrw/v15y2026i2p252-264.html

The Mediating Effect of Self-confidence on the Impact of Conscious and Unconscious Processes on Risky Investment Intention

Author

Listed:
  • Selim Aren
  • Hatice Nayman Hamamcı

Abstract

This study investigated the mediating effect of trust and self-confidence on the effects of both conscious processes (coping strategies) and unconscious processes (defence mechanisms) on risky investment intention. In this context, data were collected from 832 participants using an online survey. Exploratory factor and correlation analyses were performed on the collected data, and the research model was tested using structural equation modelling. According to the results of the analysis, both coping strategies and defence mechanisms have an effect on risky investment intention, and self-confidence has a mediating role in this relationship. This study is unique because it explores the effects of both conscious and unconscious processes on financial decisions.

Suggested Citation

  • Selim Aren & Hatice Nayman Hamamcı, 2026. "The Mediating Effect of Self-confidence on the Impact of Conscious and Unconscious Processes on Risky Investment Intention," FIIB Business Review, , vol. 15(2), pages 252-264, March.
    • Handle: RePEc:sae:fbbsrw:v:15:y:2026:i:2:p:252-264
    DOI: 10.1177/23197145231175954
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/23197145231175954
    Download Restriction: no
    File URL: https://libkey.io/10.1177/23197145231175954?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
    ---><---

    References listed on IDEAS

    as
    1. Taffler, Richard J. & Spence, Crawford & Eshraghi, Arman, 2017. "Emotional economic man: Calculation and anxiety in fund management," Accounting, Organizations and Society, Elsevier, vol. 61(C), pages 53-67.
    2. Kanagaretnam, Kiridaran & Lobo, Gerald J. & Wang, Chong & Whalen, Dennis J., 2019. "Cross-Country Evidence on the Relationship between Societal Trust and Risk-Taking by Banks," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 54(1), pages 275-301, February.
    3. Yao, Zheying & Rabbani, Abed G., 2021. "Association between investment risk tolerance and portfolio risk: The role of confidence level," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).
    4. Angelo Panno, 2016. "Trait Emotional Intelligence Is Related to Risk Taking when Adolescents Make Deliberative Decisions," Games, MDPI, vol. 7(3), pages 1-8, August.
    5. Faseeh Amin & Mohammad Furqan Khan, 2021. "Online Reputation and Stress: Discovering the Dark Side of Social Media," FIIB Business Review, , vol. 10(2), pages 181-192, June.
    6. Wei Cui & Yongli Zhang, 2021. "Effect of trust on financial market participation: evidence from China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 26(3), pages 442-461, July.
    7. Bogaçhan Çelen & Shachar Kariv, 2004. "Distinguishing Informational Cascades from Herd Behavior in the Laboratory," American Economic Review, American Economic Association, vol. 94(3), pages 484-498, June.
    8. Jonathan Rougier, 2019. "Confidence in risk assessments," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 182(3), pages 1081-1095, June.
    9. Heba Masoud & Mohamed Albaity, 2021. "Impact of general trust on bank risk-taking: the moderating effect of confidence in banks," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 49(3), pages 453-471, March.
    10. Broihanne, M.H. & Merli, M. & Roger, P., 2014. "Overconfidence, risk perception and the risk-taking behavior of finance professionals," Finance Research Letters, Elsevier, vol. 11(2), pages 64-73.
    11. Michael Siegrist & Heinz Gutscher & Timothy C. Earle, 2005. "Perception of risk: the influence of general trust, and general confidence," Journal of Risk Research, Taylor & Francis Journals, vol. 8(2), pages 145-156, March.
    12. Richard Deaves & Erik Lüders & Guo Ying Luo, 2009. "An Experimental Test of the Impact of Overconfidence and Gender on Trading Activity," Review of Finance, European Finance Association, vol. 13(3), pages 555-575.
    13. Syed Moudud-Ul-Huq & Rabaka Akter & Tanmay Biswas, 2020. "Impact of Financial Crisis on Credit Risk: Pre- and Post-financial Crises 
in an Emerging Economy," FIIB Business Review, , vol. 9(2), pages 118-132, June.
    14. Richard Taffler, 2018. "Emotional finance: investment and the unconscious," The European Journal of Finance, Taylor & Francis Journals, vol. 24(7-8), pages 630-653, May.
    15. John R. Graham & Campbell R. Harvey & Hai Huang, 2009. "Investor Competence, Trading Frequency, and Home Bias," Management Science, INFORMS, vol. 55(7), pages 1094-1106, July.
    16. Hoi Yan Cheung & Timothy Teo & Ming-Tak Hue, 2017. "Modeling the relationships among emotional intelligence, sensation-seeking and risk-taking attitudes of university students in Hong Kong," Journal of Risk Research, Taylor & Francis Journals, vol. 20(5), pages 569-589, May.
    17. Catherine Stein & Erica Hoffmann & Erin Bonar & Jaclyn Leith & Kristen Abraham & Alexis Hamill & Shane Kraus & Shinakee Gumber & Wendy Fogo, 2013. "The United States Economic Crisis: Young Adults’ Reports of Economic Pressures, Financial and Religious Coping and Psychological Well-Being," Journal of Family and Economic Issues, Springer, vol. 34(2), pages 200-210, June.
    18. Syed Aktharsha Usman & Kellyann Berube Kowalski & Vignesh Sethu Andiappan & Satyanarayana Parayitam, 2022. "Effect of Knowledge Sharing and Interpersonal Trust on Psychological Capital and Emotional Intelligence in Higher-educational Institutions in India: Gender as a Moderator," FIIB Business Review, , vol. 11(3), pages 315-335, September.
    Full references (including those not matched with items on IDEAS)

    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. Aren Selim & Hamamci Hatice Nayman, 2023. "Mediating Effect of Pleasure-Seeking and Loss Aversion in the Relationship Between Phantasy and Financial Risk Tolerance and the Moderating Role of Confidence," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 24-44, December.
    2. Gustavo Iamin, 2024. "Are crypto-investors overconfident? The role of risk propensity and demographics. Evidence from Brazil and Portugal," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 26(1), pages 147-173, November.
    3. Markus Spiwoks & Kilian Bizer, 2018. "Correlation Neglect and Overconfidence. An Experimental Study," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 8(3), pages 1-5.
    4. Ramiah, Vikash & Xu, Xiaoming & Moosa, Imad A., 2015. "Neoclassical finance, behavioral finance and noise traders: A review and assessment of the literature," International Review of Financial Analysis, Elsevier, vol. 41(C), pages 89-100.
    5. D’Hondt, Catherine & De Winne, Rudy & Merli, Maxime, 2021. "Do retail investors bite off more than they can chew? A close look at their return objectives," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 879-902.
    6. Andreas Oehler & Julian Schneider, 2023. "Social trading: do signal providers trigger gambling?," Review of Managerial Science, Springer, vol. 17(4), pages 1269-1331, May.
    7. Schneider, Julian & Oehler, Andreas, 2021. "Competition for visibility: When do (FX) signal providers employ lotteries?," International Review of Financial Analysis, Elsevier, vol. 78(C).
    8. Jungwon Min, 2020. "Does social trust slow down or speed up the transmission of COVID-19?," PLOS ONE, Public Library of Science, vol. 15(12), pages 1-19, December.
    9. Merkle, Christoph, 2018. "The curious case of negative volatility," Journal of Financial Markets, Elsevier, vol. 40(C), pages 92-108.
    10. Merkle, Christoph, 2017. "Financial overconfidence over time: Foresight, hindsight, and insight of investors," Journal of Banking & Finance, Elsevier, vol. 84(C), pages 68-87.
    11. Forman, John & Horton, Joanne, 2019. "Overconfidence, position size, and the link to performance," Journal of Empirical Finance, Elsevier, vol. 53(C), pages 291-309.
    12. Kleine, Jens & Wagner, Niklas & Weller, Tim, 2016. "Openness endangers your wealth: Noise trading and the big five," Finance Research Letters, Elsevier, vol. 16(C), pages 239-247.
    13. Shah, Syed Faisal & Albaity, Mohamed, 2022. "The role of trust, investor sentiment, and uncertainty on bank stock return performance: Evidence from the MENA region," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).
    14. Mark Grinblatt & Matti Keloharju, 2009. "Sensation Seeking, Overconfidence, and Trading Activity," Journal of Finance, American Finance Association, vol. 64(2), pages 549-578, April.
    15. TOMA, Filip-Mihai & CEPOI, Cosmin-Octavian & NEGREA, Bogdan, 2021. "Does it payoff to be overconfident? Evidence from an emerging market – a quantile regression approach," Finance Research Letters, Elsevier, vol. 38(C).
    16. Richards, Daniel W. & Willows, Gizelle D., 2018. "Who trades profusely? The characteristics of individual investors who trade frequently," Global Finance Journal, Elsevier, vol. 35(C), pages 1-11.
    17. Andreas Oehler & Matthias Horn & Stefan Wendt, 2022. "Investor Characteristics and their Impact on the Decision to use a Robo-advisor," Journal of Financial Services Research, Springer;Western Finance Association, vol. 62(1), pages 91-125, October.
    18. Bregu, Klajdi, 2020. "Overconfidence and (Over)Trading: The Effect of Feedback on Trading Behavior," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 88(C).
    19. Wu, Zheng & Westerholm, P. Joakim, 2024. "Gender difference in equity portfolio diversification," Pacific-Basin Finance Journal, Elsevier, vol. 88(C).
    20. Tsung-ming Yeh & Yue Ling, 2022. "Confidence in Financial Literacy, Stock Market Participation, and Retirement Planning," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 169-186, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:sae:fbbsrw:v:15:y:2026:i:2:p:252-264. 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: SAGE Publications (email available below). General contact details of provider: .

    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.