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Effects of anger and anxiety traits on financial risk tolerance of novices and experts

Hüner, Ecem Gizem
Anger and anxiety have been analyzed in behavioral decision making field for a long timme. Especially, their effects on the process of decision making under risky choices havve been examined heavily. In previous studies, it has been found that anger and anxiety, both in state level and trait level; have opposite influences in terms of the propensity to take risk. Concordantly, in the present study, trait anger and trait anxiety were investigated with regards to their effects on financial risk tolerance. The study conducted by using hierarchical linear regression and as expected dispositional anger showed significant positive relationship with risk tolerance, whereas dispositional anxiety became meaningful and showed association in reverse direction just in the sample consisting of students. Unfortunately, the second sample which involves bank employees gave no statistically valid insights for this study.