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Chapter 7 Conclusion


This chapter begins with a brief summary of the results, followed by the limitations and opportunities for future research. A section on the concluding statements then bookends the thesis.

7.1 Summary of Results

The main hypotheses were unsupported, and chronic regulatory focus had no sig- nificant effect on asset or portfolio allocation. This was postulated to be due to the influence of the unfavourable world financial outlook, which caused participants to select assets and portfolios unrelated to their chronic regulatory focus. Regarding the further hypotheses, Hα and Hγ were supported, indicating that gender and education are associated with regulatory focus and asset and portfolio decisions. The data does not support Hβ and it may be that age was not related to regulatory focus and asset and portfolio decisions, although further study may be necessary in this aspect.

Eye tracking is deemed to give insight into how participants make financial decisions, but does not provide a clear indication of whether this information was used to make the associated financial decision on the self-report. Several other findings were reported, which provide opportunities for future research, as denoted in Sect. 7.3.

7.2 Limitations

Given its exploratory nature, this book has several limitations, which are important in outlining, so as to pioneer future research.

Whether eye movements represent one's thoughts or otherwise are still is not certain. Eye tracking is proposed to give insight into how participants make financial decisions, but does not provide an accurate indication of whether this information was used to make the related financial choice on the self-report. As stated in the preceding chapter, advanced devices such as the fMRI or EEG may be used in tandem to give further understanding into one's decision-making process.

Unlike the assets used in this book, the portfolios are not empirically tested to be sensitive to one's regulatory focus. Although the portfolios selected are associated with the asset choices, further empirical testing is necessary. From this process, the portfolios may be modified and aligned closer to the tenets of regulatory focus theory.

This book was conducted in an Asian country, but at an Australian university. The term 'Mutual funds' is not commonly used in Australia, and the Australian academics who participated in the research were thus excluded. Future studies will ensure that all assets and portfolios used are familiar to participants of varying nationalities, especially in universities where there are staff and students of different nationalities. Given the exploratory nature of the study, the limitations observed can provide avenues for future research, and were explored in the following section.

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