|Title||Afraid of the stock market|
|Publication Type||Journal Article|
|Year of Publication||Forthcoming|
|Authors||Lim, Y, Kim, KTae|
|Journal||Review of Quantitative Finance and Accounting|
|Keywords||Decision making, Investing, Stocks|
This study demonstrates the way investors psychological traits influence their financial behaviors in the stock market. Results from the Health and Retirement Study show that anxious individuals are reluctant to participate in the stock market and have a lower level of risky investments. Anxiety’s effect is more pronounced for less educated investors, implying that anxiety about the unknown stock market drives this effect. Analysis of individual traumatic experiences as instruments for the current anxiety level suggests a causal effect of anxiety on investment decisions.
|Short Title||Rev Quant Finan Acc|