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5.2.4 Validity of H2: Self-report

The measure of interest for this section was the portfolio selection indicated on the self-report, instead of the eye tracker in the previous section. A chi-squared test was first conducted to determine association between regulatory focus and portfolio allocation (H2). The cross tabulation is denoted in Table 5.10. No significant results were reported (n = 93, χ2 = 0.218, p > 0.05). The chi-squared test does not support H2, with the self-report as the measure.

Although the chi-squared results are insignificant, further understanding may be obtained by controlling for other variables, and a logit regression was performed. Table 5.11, as below, indicates that self-report—portfolio selection is the dependent variable, and age, education, ethnicity, marital status, regulatory focus, financial literacy and gender are the independent variables. Table 5.11 indicates that there are no significant results for regulatory focus in the logit model. H2 is not supported by the logistic regression, when the self-report is utilised as the measure.

Although H2 is unsupported by the self-report, Table 5.11 indicates that gender is significant (β = −0.663, p < 0.10). This indicates that females are less likely than males to select a prevention rather than promotion portfolio. Further analysis on gender will be conducted in later sections, to gain additional insight.

Table 5.10 Cross tabulation for regulatory focus * portfolio allocation (self-report)

Self-report—portfolio

Total

Promotion

Prevention

Regulatory focus

Promotion

28

22

50

Prevention

22

21

43

Total

50

43

93

Table 5.11 Logit model for self-report—portfolio selection against age, education, ethnicity, gender, marital status, regulatory focus, financial literacy

Dependent variable

−2 Log likelihood

Cox and Snell R square

Nagelkerke R square

Self-report—portfolio selection

122.082

0.068

0.091

Variable

β

S.E.

Sig.

Age

0.409

0.807

0.306

Education

−0.707

0.854

0.204

Ethnicity

−0.382

0.977

0.348

Gender

−0.663

0.471

0.080

Marital status

−0.764

0.674

0.129

Regulatory focus

0.177

0.444

0.345

Financial literacy

0.222

0.48

0.322

Constant

0.506

0.494

0.153


On the eye tracker, most participants selected the prevention portfolio, but were almost equally likely to select either portfolio or the self-report. Overall, H2 is unsupported by the data, regardless of the measure used. This is purported to be due to the effect of the adverse world financial outlook, causing participants to select portfolios that are not in accordance with their chronic regulatory focus.

 
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