Does perfectionism influence individual financial risk tolerance and financial well-being? Evidence from an online survey data from the US
Does perfectionism influence individual financial risk tolerance and financial well-being? Evidence from an online survey data from the US
Perfectionism influences various aspects of our lives, such as academic study, music, athletics, and work. Perfectionism has two essential facets: striving and evaluative concerns. The effect of perfectionism on financial domain was rarely examined. This study aims to investigate whether perfectionism influence tolerance for financial risk, wealth accumulation and gambling behavior. We implement a cross-sectional study with an online survey sample of 661 US residents. We conduct OLS, quantile and ordered logistic regressions as well as mediation tests to examine the relationships between the variables of interest. The results suggest three findings. First, perfectionistic striving is positively associated with financial risk tolerance, but perfectionistic concerns have no impact on financial risk tolerance. Second, perfectionistic striving (concerns) positively (negatively) predicts liquid wealth mediated by investment knowledge. Third, perfectionistic concerns inhibit gambling expenditure. This study contributes to theory by documenting that perfectionism can influence financial satisfaction or well-being. The conclusions also have important implication from a policy perspective.
Perfectionism, Risk tolerance, Wealth, Gamble
1
Wang, Di
a5be5c5c-fc2b-407d-b9e3-09deb416533f
McGroarty, Frank
693a5396-8e01-4d68-8973-d74184c03072
12 October 2022
Wang, Di
a5be5c5c-fc2b-407d-b9e3-09deb416533f
McGroarty, Frank
693a5396-8e01-4d68-8973-d74184c03072
Wang, Di and McGroarty, Frank
(2022)
Does perfectionism influence individual financial risk tolerance and financial well-being? Evidence from an online survey data from the US.
SN Business & Economics, 2 (171), , [171].
(doi:10.1007/s43546-022-00339-7).
Abstract
Perfectionism influences various aspects of our lives, such as academic study, music, athletics, and work. Perfectionism has two essential facets: striving and evaluative concerns. The effect of perfectionism on financial domain was rarely examined. This study aims to investigate whether perfectionism influence tolerance for financial risk, wealth accumulation and gambling behavior. We implement a cross-sectional study with an online survey sample of 661 US residents. We conduct OLS, quantile and ordered logistic regressions as well as mediation tests to examine the relationships between the variables of interest. The results suggest three findings. First, perfectionistic striving is positively associated with financial risk tolerance, but perfectionistic concerns have no impact on financial risk tolerance. Second, perfectionistic striving (concerns) positively (negatively) predicts liquid wealth mediated by investment knowledge. Third, perfectionistic concerns inhibit gambling expenditure. This study contributes to theory by documenting that perfectionism can influence financial satisfaction or well-being. The conclusions also have important implication from a policy perspective.
Text
s43546-022-00339-7
- Version of Record
More information
Accepted/In Press date: 13 September 2022
Published date: 12 October 2022
Keywords:
Perfectionism, Risk tolerance, Wealth, Gamble
Identifiers
Local EPrints ID: 472721
URI: http://eprints.soton.ac.uk/id/eprint/472721
ISSN: 2662-9399
PURE UUID: e0ca422f-0a75-4548-b18b-0add08975312
Catalogue record
Date deposited: 15 Dec 2022 17:44
Last modified: 17 Mar 2024 02:57
Export record
Altmetrics
Contributors
Author:
Di Wang
Author:
Frank McGroarty
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics