Behavioral economics: who are the investors with the most sustainable stock happiness, and why? Low aspiration, external control, and country domicile may save your lives—monetary wisdom

Date
2022
Authors
Tang, Ningyu
Li, Zhen
Chen, Jingqiu
Tang, Thomas Li-Ping
Journal Title
Journal ISSN
Volume Title
Publisher
Springer
Abstract

Slight absolute changes in the Shanghai Stock Exchange Index (SHSE) corresponded to the city’s immediate increases in coronary heart disease deaths and stroke deaths. Signifcant fuctuations in the Shenzhen Stock Exchange Index (SZSE) corresponded to the country’s minor, delayed death rates. Investors deal with money, greed, stock volatility, and risky decision-making. Happy people live longer and better. We ask the following question: Who are the investors with the highest and most sustainable stock happiness, and why? Monetary wisdom asserts: Investors apply their deep-rooted values (avaricious love-of-money aspiration and locus of control, Level 2) as a lens to frame critical concerns in the proximal-immediate (Shanghai Stock Exchange Index changes, Level 1) and the omnibus-distal contexts (domicile: city vs. country, Level 2) to maximize expected utility (portfolio changes, Level 1) and ultimate serenity (stock happiness, Level 1). We collected multilevel data—the longitudinal SHSE and 227 private investors’ daily stock happiness and portfolio changes for 36 consecutive trading days in four regions of China. Investors had an average liquid asset of $76,747.41 and $54,660.85 in stocks. This study is not a “one-shot” game with “nothing at stake.” We classifed Shanghai and Beijing as the city and Shenzhen and Chongqing as the country. Our cross-level 3-D visualization reveals that regardless of SHSE volatility, investors with low aspiration, external control, and country domicile enjoy the highest and most sustainable stock happiness with minimum fuctuations. Independently, investors with low aspiration, external control, and country domicile tend to make fewer portfolio changes than their counterparts. Behaviorally, less is more, debunking the myth—risky decisions excite stock happiness. Our longitudinal study expands prospect theory, incorporates attitude toward money, and makes robust contributions to behavioral economics and business ethics. We help investors and ordinary citizens make happy, healthy, and wealthy decisions. Most importantly, the life you save may be your own.

Description
Article originally published by Asian Journal of Business Ethics, 11(2), 359–397. Published online 2022. https://doi.org/10.1007/s13520-022-00156-z
Keywords
Stock volatility, Boom-bust, Bull-bear markets, SSE, Shanghai Stock, Exchange Index, Greed, Avaricious monetary aspiration, Love of money, Internal vs. external-locus-of-control, Domicile, Residence, City vs. country, Identity, Environmental capital, HOPE, Portfolio changes, Utility, Stock happiness, SWB, Serenity, Behavioral economics, Finance, Prospect theory, Gains vs. losses, Probability, Risk seeking vs. risk aversion, Health, Stress, Mindfulness, Values, Self-transcendence vs. self-enhancement, Sacred vs. secular, TPB, Attitude, Control, Norms, Behavior, China
Citation
This is the published version of an article that is available at https://doi.org/10.1007/s13520-022-00156-z. Recommended citation: Tang, N., Li, Z., Chen, J., & Tang, T. L.-P. (2022). Behavioral economics: Who are the investors with the most sustainable stock happiness, and why? low aspiration, external control, and country domicile may save your lives—monetary wisdom. Asian Journal of Business Ethics, 11(2), 359–397. This item has been deposited in accordance with publisher copyright and licensing terms and with the author’s permission.