The Effect of FOMO on Investment Decisions: The Role of Risk-Taking Propensity
Abstract
This study investigates the moderating role of Risk-Taking Propensity on the relationship between Fear of Missing Out (FOMO) and Individual Investment Decisions, while also examining the effects of demographic factors. A survey of 424 participants was conducted, and data were analyzed using correlation, regression, and moderation analysis. The findings indicate that individuals with higher levels of FOMO and Risk-Taking Propensity are more likely to engage in investment decisions. Moreover, Risk-Taking Propensity strengthens the positive effect of FOMO on investment decisions, enhancing its influence. Demographic variables significantly affect all three constructs. These findings highlight the importance of considering both psychological traits and socio-economic factors in understanding financial decision-making. The results provide valuable insights for investors, financial advisors, and policymakers seeking to improve decision-making processes by recognizing the influence of psychological and demographic factors.
Keywords
Individual Investment Decisions, Behavioral Finance, Risk, Economic Behavior, Financial Decision-Making
Ethical Statement
This study was conducted in accordance with the principles of scientific research and publication ethics.
The research is a survey-based study involving human participants, and ethical approval was obtained prior to data collection. The study was reviewed and approved by the Social and Human Sciences Research Ethics Committee of Istanbul University at its meeting dated November 27, 2023 (Meeting No. 11), and was deemed ethically appropriate (File No. 2023/396; Ethics Committee Approval dated December 11, 2023, No. 2295643).
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