The role of hope in financial risk seeking

Martin C Reimann, Gergana Y. Nenkov, Deborah MacInnis, Maureen Morrin

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

One construct validation study and four experiments showed that the relationship between hope and financial risk seeking depended on whether or not the possibility of a hoped-for outcome was threatened. Whereas high (vs. low) hope decreased financial risk seeking when the possibility of a hoped-for outcome was not threatened, high (vs. low) hope increased financial risk seeking when the outcome's possibility was threatened. These effects were observed in different contexts (i.e., gambling, stock investing, bidding, retirement investing), when applying different operationalizations of hope and threats to possibility, and when controlling for alternative explanations. We also showed that individuals' motivations to either achieve gains or avoid losses mediated the effects of hope on financial risk seeking. This research, which is the first to study the role of hope in financial decision making, adds to the extant literature by underscoring the psychological impact of threats to the possibility of attaining a hoped-for financial outcome.

Original languageEnglish (US)
Pages (from-to)349-364
Number of pages16
JournalJournal of Experimental Psychology: Applied
Volume20
Issue number4
DOIs
StatePublished - 2014

Fingerprint

Hope
Gambling
Retirement
Validation Studies
Motivation
Decision Making
Psychology

Keywords

  • Experiments
  • Financial risk seeking
  • Hope
  • Outcome threat

ASJC Scopus subject areas

  • Experimental and Cognitive Psychology

Cite this

The role of hope in financial risk seeking. / Reimann, Martin C; Nenkov, Gergana Y.; MacInnis, Deborah; Morrin, Maureen.

In: Journal of Experimental Psychology: Applied, Vol. 20, No. 4, 2014, p. 349-364.

Research output: Contribution to journalArticle

Reimann, Martin C ; Nenkov, Gergana Y. ; MacInnis, Deborah ; Morrin, Maureen. / The role of hope in financial risk seeking. In: Journal of Experimental Psychology: Applied. 2014 ; Vol. 20, No. 4. pp. 349-364.
@article{2c6c80d511614d58bb654b4a38c2154e,
title = "The role of hope in financial risk seeking",
abstract = "One construct validation study and four experiments showed that the relationship between hope and financial risk seeking depended on whether or not the possibility of a hoped-for outcome was threatened. Whereas high (vs. low) hope decreased financial risk seeking when the possibility of a hoped-for outcome was not threatened, high (vs. low) hope increased financial risk seeking when the outcome's possibility was threatened. These effects were observed in different contexts (i.e., gambling, stock investing, bidding, retirement investing), when applying different operationalizations of hope and threats to possibility, and when controlling for alternative explanations. We also showed that individuals' motivations to either achieve gains or avoid losses mediated the effects of hope on financial risk seeking. This research, which is the first to study the role of hope in financial decision making, adds to the extant literature by underscoring the psychological impact of threats to the possibility of attaining a hoped-for financial outcome.",
keywords = "Experiments, Financial risk seeking, Hope, Outcome threat",
author = "Reimann, {Martin C} and Nenkov, {Gergana Y.} and Deborah MacInnis and Maureen Morrin",
year = "2014",
doi = "10.1037/xap0000027",
language = "English (US)",
volume = "20",
pages = "349--364",
journal = "Journal of Experimental Psychology: Applied",
issn = "1076-898X",
publisher = "American Psychological Association Inc.",
number = "4",

}

TY - JOUR

T1 - The role of hope in financial risk seeking

AU - Reimann, Martin C

AU - Nenkov, Gergana Y.

AU - MacInnis, Deborah

AU - Morrin, Maureen

PY - 2014

Y1 - 2014

N2 - One construct validation study and four experiments showed that the relationship between hope and financial risk seeking depended on whether or not the possibility of a hoped-for outcome was threatened. Whereas high (vs. low) hope decreased financial risk seeking when the possibility of a hoped-for outcome was not threatened, high (vs. low) hope increased financial risk seeking when the outcome's possibility was threatened. These effects were observed in different contexts (i.e., gambling, stock investing, bidding, retirement investing), when applying different operationalizations of hope and threats to possibility, and when controlling for alternative explanations. We also showed that individuals' motivations to either achieve gains or avoid losses mediated the effects of hope on financial risk seeking. This research, which is the first to study the role of hope in financial decision making, adds to the extant literature by underscoring the psychological impact of threats to the possibility of attaining a hoped-for financial outcome.

AB - One construct validation study and four experiments showed that the relationship between hope and financial risk seeking depended on whether or not the possibility of a hoped-for outcome was threatened. Whereas high (vs. low) hope decreased financial risk seeking when the possibility of a hoped-for outcome was not threatened, high (vs. low) hope increased financial risk seeking when the outcome's possibility was threatened. These effects were observed in different contexts (i.e., gambling, stock investing, bidding, retirement investing), when applying different operationalizations of hope and threats to possibility, and when controlling for alternative explanations. We also showed that individuals' motivations to either achieve gains or avoid losses mediated the effects of hope on financial risk seeking. This research, which is the first to study the role of hope in financial decision making, adds to the extant literature by underscoring the psychological impact of threats to the possibility of attaining a hoped-for financial outcome.

KW - Experiments

KW - Financial risk seeking

KW - Hope

KW - Outcome threat

UR - http://www.scopus.com/inward/record.url?scp=84925582405&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84925582405&partnerID=8YFLogxK

U2 - 10.1037/xap0000027

DO - 10.1037/xap0000027

M3 - Article

C2 - 25180947

AN - SCOPUS:84925582405

VL - 20

SP - 349

EP - 364

JO - Journal of Experimental Psychology: Applied

JF - Journal of Experimental Psychology: Applied

SN - 1076-898X

IS - 4

ER -