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The role of regulatory focus and information in investment choice: some evidence using visual cues to frame regulatory focus

journal contribution
posted on 2018-01-02, 00:00 authored by S Y Ewe, Ferdinand GulFerdinand Gul, C K C Lee, C Y Yang
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.

History

Journal

Journal of Behavioral Finance

Pagination

1 - 12

Publisher

Routledge

Location

Philadelphia, Pa.

ISSN

1542-7560

eISSN

1542-7579

Language

eng

Publication classification

C Journal article; C1 Refereed article in a scholarly journal

Copyright notice

2017, Institute of Behavioral Finance