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Mediating Effect of Pleasure-Seeking and Loss Aversion in the Relationship Between Phantasy and Financial Risk Tolerance and the Moderating Role of Confidence

Author

Listed:
  • Aren Selim

    (1 Yildiz Technical University, Faculty of Economics and Administrative Sciences/Business Department, Turkey)

  • Hamamci Hatice Nayman

    (2 Yildiz Technical University, Faculty of Economics and Administrative Sciences/Business Department, Turkey)

Abstract

Deciding to trade in financial markets is psychologically difficult and wearing. Investors want to find rational justifications for the correctness of their decisions. However, there is uncertainty in financial markets. This uncertainty does not allow for mathematical calculations. In such case, feelings get involved in the decision process.

Suggested Citation

  • 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.
    • Handle: RePEc:vrs:foeste:v:23:y:2023:i:2:p:24-44:n:5
    DOI: 10.2478/foli-2023-0017
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    More about this item

    Keywords

    Phantasy; Loss Aversion; Pleasure Seeking; Confidence; Financial Risk Tolerance;
    All these keywords.

    JEL classification:

    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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