Affect-based stock investment decision : the role of affective self-affinity
Embargo Lift Date: 2019-06-01
Journal of Behavioral and Experimental Economics
97 - 109
Item Usage Stats
This paper studies the role of affective self-affinity for a company in the stock investment decision by investigating the factors triggering it. Based on the social identity theory and the affect literature we hypothesize that three types of identifications, namely group related, company-people related and idea/ideal related, trigger affective self-affinity for a company which results in extra affect-based motivation to invest in the company's stock. The two ideas included in the idea/ideal related affective self-affinity are socially responsible investing and nationality related ideas. Based on the survey data of 133 active individual investors, we find that the more the investors perceive the company supports/represents a specific group or idea or employ a specific person, with which the investors identify themselves, the higher is the investors’ affective self-affinity for the company. This results in higher extra affective motivation to invest in the company's stock over and beyond financial indicators. Thus, investors’ identification with groups, people, or ideas such as socially responsible investing and nationality results in higher affect-based investment motivation through affective self-affinity aroused in the investors. Moreover, positive attitude towards the company is another factor that explains the affect-based extra investment motivation. © 2017 Elsevier Inc.
Antecedents of affective self-affinity
Social identity theory
Published Version (Please cite this version)http://dx.doi.org/10.1016/j.socec.2017.04.004
Showing items related by title, author, creator and subject.
Neyaptı, B.; Taşkın, F.; Üngör, M. (Routledge, 2007)The numerous discussions regarding the advantages and disadvantages of Turkey's becoming a member of the Customs Union has been inconclusive. The empirical analysis that mostly focus on the changes in the volume of trade ...
Drivonikou G.; Clifford A.; Franklin A.; Özgen E.; Davies I.R. L. (John Benjamins Publishing Company, 2011)There is indirect evidence that categorical colour perception (better discrimination of colours from different categories than those from the same category) can be learned. For instance, CP can be induced across a newly ...
The role of sense of coherence and physical activity in positive and negative affect of Turkish adolescents Öztekin, C.; Tezer, E. (Libra Publishers, Inc., 2009)This study investigated the role of sense of coherence and total physical activity in positive and negative affect. Participants were 376 (169 female, 206 male, and 1 missing value) student volunteers from different ...