Chronotype, risk and time preferences, and financial behaviour
Chronotype, risk and time preferences, and financial behaviour
This paper examines the effect of chronotype on the delinquent credit card payments and stock market participation through preference channels. Using an online survey of 455 individuals who have been working for 3 to 8 years in companies in mainland China, the results reveal that morningness is negatively associated with delinquent credit card payments. Morningness also indirectly predicts delinquent credit card payments through time preference, but this relationship only exists when individuals’ monthly income is at low and average level. On the other hand, financial risk preference accounts for the effect of morningness on stock market participation. Consequently, an additional finding is that morningness is positively associated with financial risk preference, which contradicts previous finding in the literature. Finally, based on the empirical evidence, we discuss the plausible mechanisms that may drive these relationships and the implications for theory and practice. The current study contributes to the literature by examining the links between circadian typology and particular financial behaviour of experienced workers.
Wang, Di
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McGroarty, Frank
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Cheah, Jeremy
298800de-521f-4aa8-9c04-2f58eece4c6e
Wang, Di
a5be5c5c-fc2b-407d-b9e3-09deb416533f
McGroarty, Frank
693a5396-8e01-4d68-8973-d74184c03072
Cheah, Jeremy
298800de-521f-4aa8-9c04-2f58eece4c6e
Wang, Di, McGroarty, Frank and Cheah, Jeremy
(2018)
Chronotype, risk and time preferences, and financial behaviour.
Algorithms, 11 (10), [153].
(doi:10.3390/a11100153).
Abstract
This paper examines the effect of chronotype on the delinquent credit card payments and stock market participation through preference channels. Using an online survey of 455 individuals who have been working for 3 to 8 years in companies in mainland China, the results reveal that morningness is negatively associated with delinquent credit card payments. Morningness also indirectly predicts delinquent credit card payments through time preference, but this relationship only exists when individuals’ monthly income is at low and average level. On the other hand, financial risk preference accounts for the effect of morningness on stock market participation. Consequently, an additional finding is that morningness is positively associated with financial risk preference, which contradicts previous finding in the literature. Finally, based on the empirical evidence, we discuss the plausible mechanisms that may drive these relationships and the implications for theory and practice. The current study contributes to the literature by examining the links between circadian typology and particular financial behaviour of experienced workers.
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FMAlgorithms - accepted manuscript without journal formatting
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algorithms-11-00153-v3
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Accepted/In Press date: 8 October 2018
e-pub ahead of print date: 10 October 2018
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Local EPrints ID: 425236
URI: http://eprints.soton.ac.uk/id/eprint/425236
ISSN: 1999-4893
PURE UUID: 7bed5a0f-0f56-4c64-8d8a-17045282fa97
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Date deposited: 11 Oct 2018 16:30
Last modified: 16 Mar 2024 07:09
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Author:
Di Wang
Author:
Frank McGroarty
Author:
Jeremy Cheah
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