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5.2.5 Validity of Main Hypotheses: Summary

Both H1 and H2 are unsupported by the data, regardless of the measure used; eye tracker or self-report. The effect of the negative world financial climate is purported to have influenced participants by selecting the assets and portfolios that are not in accordance with their chronic regulatory foci. This effect will be elaborated upon in section.

5.2.6 Financial Outlook

In Sect. 5.2, both hypotheses were unsupported, regardless of the measure used. It is proposed that the effect of the harsh world financial outlook influenced the par- ticipants to select the assets and portfolios that were not in accordance with their regulatory focus. In the pilot study, preliminary statistics indicated that participants were not selecting assets and portfolios according to their chronic regulatory focus,

i.e. promotion-focused participants were not selecting promotion assets and port- folios, and prevention-focused participants were not selecting prevention assets and portfolios. To determine the effect of the unfavourable world financial climate, the latter half of the participants (58) were asked to write their answer to the following open-ended question:

What do you feel about the global financial situation?

The above question was placed in the questionnaire after completion of the test for financial literacy. The responses to this question were then coded, with magnitude coding (Saldaña 2012) into the following categories 'Positive', 'Negative' and 'Indifferent'. Examples of these responses and their corresponding codes are as follows. Positive

It's definitely fluctuating but I think these things will eventually balance out as they usually do. I'm not an economist so I don't know what the real situation is. However, I feel that there isn't a major crisis (not more so than in previous occasions). In fact, I feel that on the contrary there appears to be economic growth and development in Asia.

The 'Positive' code was assigned when participants', as above, indicated that they felt the world financial outlook was positive, or improving. Negative

I feel that the current global financial situation is getting worse. Further, it will worsen due to Europe's crisis and the Middle East Crisis as well.

Beyond Rubbish!! I came to this conclusion based on the following factors. The capitalist economic system is based on resource savvy, power hungry principles which would make a few people (<1% global population) rich. These individuals/countries/corporation tends (sic) to make economic bubbles for their betterment, which would shoot 95% of the world population into economic stride. I do not believe in finances such as in currency and only believe in resources, such as oil, gold, etc. I feel the current global financial situation would deteriorate even further and collapse taking the entire world with it.

The 'Negative' code was assigned when the participant indicated that the world

financial outlook was worsening, or in a poor state. Indifferent

I'm oblivious to the global financial situation. However, it should be rather okay I suppose based on the fact that I'm nowhere close to eating grass.

To be honest quite indifferent as someone else handles my portfolio. Terrible but true.

'Indifferent' was assigned when the participant indicated that they did not care or unaware of the global financial outlook. Descriptives

After coding was completed, most of the participants were assigned a 'Negative' world outlook, as indicated in Table 5.11a. Fifty eight participants answered the open-ended question, as it was provided for only the latter half of the participants.

Financial outlook was postulated to influence participants to select the asset and portfolio that were not associated with their chronic regulatory focus. The significant results in Sect. 5.3.3 indicate that asset and portfolio selections on the self-report

Table 5.11a Breakdown of

financial outlook Table 5.11b Fisher's exact test and cross tabulation for Regulatory focus *

asset allocation (positive


were associated. Financial outlook is also proposed to be related to asset and port- folio allocation decisions. Thus, examining participants by their financial outlook, and then testing the association between regulatory focus and asset/portfolio allo- cation, further insight may be gleaned. The next section outlines the findings. Regulatory Focus * Asset and Portfolio Selection: Financial Outlook

As financial outlook is purported to affect asset and portfolio selection, segmenting the participants by their financial outlook and then testing for association between regulatory focus and the selections made may yield further insights. Significant results were only obtained for the association between regulatory focus and self-report—asset selection, for those with a positive outlook, as indicated in Table 5.11b. No significant results were obtained for the association between regulatory focus and self-report—portfolio selection, eye tracker—asset selection and eye tracker—portfolio selection.

Table 5.11b indicates a main effect of regulatory focus on self-report—asset selection (n = 11, Fisher's exact test = 0.045, p < 0.05) for the positive group. Fisher's exact test is used as the expected count as less than 5 (Upton 1992), thus making this test of association unsuitable for the Pearson chi-squared test (Mehta et al. 1984). Table 5.11b states that participants with a chronic promotion focus were fairly evenly distributed across the promotion and prevention allocation scenarios, i.e. they had an equal chance of choosing a prevention or promotion asset. However, all participants with a chronic prevention focus selected the pre- vention asset, instead of the promotion asset. The next section details analysis into the further hypotheses.

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