Do happy people make optimistic investors?

Kaplanski, G., Levy, H., Veld, C. and Veld-Merkoulova, Y. (2015) Do happy people make optimistic investors? Journal of Financial and Quantitative Analysis, 50(1-2), pp. 145-168. (doi: 10.1017/S0022109014000416)

Full text not currently available from Enlighten.

Publisher's URL: http://dx.doi.org/10.1017/S0022109014000416

Abstract

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 non-economic factors systematically affect return and risk expectations, where the return effect is more profound. Investment plans are also affected by non-economic 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.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Veld, Professor Chris and Veld-Merkoulova, Professor Yulia
Authors: Kaplanski, G., Levy, H., Veld, C., and Veld-Merkoulova, Y.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
Journal Name:Journal of Financial and Quantitative Analysis
Publisher:Cambridge University Press
ISSN:0022-1090
ISSN (Online):1756-6916
Published Online:18 July 2014

University Staff: Request a correction | Enlighten Editors: Update this record