Do Happy People Make Optimistic Investors

By G. Kaplanski, Haim Levy, C. Veld, Y. Veld-Merkoulova. 2015

113 citations recorded by the source corpus.

Do happy people predict future risk and return differently from unhappy people, or do individuals rely only on economic facts? We survey investors on their subjective sentiment-creating factors, return and risk expectations, and investment plans. We find that noneconomic factors systematically affect return and risk expectations, where the return effect is more profound. Investment plans are also affected by noneconomic factors. Sports results and general feelings significantly affect predictions. Sufferers from seasonal affective disorder have lower return expectations in the autumn than in other seasons, supporting the winter blues hypothesis.

Subfields: Accounting, Finance, General Decision Sciences

View Paper: https://www.semanticscholar.org/paper/e20fa7fc3794ce8319a73f632c3342e8e3722bc3

Citations in the corpus

• Divergence of Sentiment and Stock Market Trading (2017, unknown): “…been established by household survey data (Brown and Cliff, 2004; Lemmon and Portniaguina, 2006; Qiu and Welch, 2006; Schmeling, 2009; Kaplanski et al., 2015), economic and financial variables (Lee et al., 1991; Baker and Wurgler, 2007; Brown et al., 2008; Firth et al., 2015), social…”