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Chronotype, risk and time preferences, and financial behaviour

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.
1999-4893
Wang, Di
a5be5c5c-fc2b-407d-b9e3-09deb416533f
McGroarty, Frank
693a5396-8e01-4d68-8973-d74184c03072
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).

Record type: Article

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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Accepted/In Press date: 8 October 2018
e-pub ahead of print date: 10 October 2018

Identifiers

Local EPrints ID: 425236
URI: http://eprints.soton.ac.uk/id/eprint/425236
ISSN: 1999-4893
PURE UUID: 7bed5a0f-0f56-4c64-8d8a-17045282fa97
ORCID for Di Wang: ORCID iD orcid.org/0000-0002-7621-8669
ORCID for Frank McGroarty: ORCID iD orcid.org/0000-0003-2962-0927
ORCID for Jeremy Cheah: ORCID iD orcid.org/0000-0003-2953-3815

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Date deposited: 11 Oct 2018 16:30
Last modified: 07 Oct 2020 04:31

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