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7.4 Concluding Statements

The primary purpose of this book is to see if chronic regulatory focus is associated with certain assets and portfolios. However, the main hypotheses indicate that there is no significant association between one's chronic regulatory focus and their asset and portfolio selection. It was proposed that the effect of the unfavourable world financial outlook caused most participants selecting the prevention asset on both measures, and the prevention portfolio on the eye tracker. Overall, participants did not choose assets or portfolios that were associated with their chronic regulatory focus. The additional hypotheses indicate that education and gender are related to regulatory focus and asset and portfolio allocation, whilst age does not appear to share a similar association.

Although participants looked at certain assets and portfolios for a proportion- ately longer time, they did not necessarily select these assets or portfolios on the self-report. Thus, eye tracking may give insights into the type of information viewed by consumers but does not provide a clear indication if this information was actually used to make an associated financial decision. Future research should consider using more advanced devices in tandem with the eye tracker to gain further insight into consumer decision-making process.

Overall, this study is of an exploratory nature, and much of the findings in this

book suggest the possibility of future studies in both finance and consumer behaviour. Possible policy implications and improved marketing processes for financial institutions are the intended outcomes for this research. For the partici- pants involved in the experiment, it is hoped that they will gain a greater under- standing of the underlying processes that lead to their financial decisions. It is also expected that individuals will be able to make financial decisions that are not hampered by their own inherent biases, and select those which are most appropriate for their risk appetite and prevailing economic situation.

This research ties together concepts from finance and psychology, to gain insight into how financial decisions are made. Future research in this vein will be of great importance to both areas, increasing the depth of both fields, aiding in the easing of psychological theories into the mainstream of financial research, augmenting the ability of financial theory in explaining financial outcomes.

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