What is it about?
In some situations financial decision-makers prefer to know less than more. In this study we investigated the impact of selected characteristics of financial threats on individuals’ decisions to avoid risk information: (1) threat severity, (2) relative risk, and (3) effectiveness of threat prevention. We designed an economic experiment in which subjects were facing financial risk and were asked to make certain decisions.
Featured Image
Why is it important?
To the best of our knowledge, this is the first study of financial risk information avoidance. Our introduction of the construct of information avoidance to the field of behavioural finance and our application of experimental methodology to investigating this problem are the main novel contributions of our study.
Perspectives
The key contribution of this study is demonstrating that many decision-makers do, in fact, engage in financial risk information avoidance. The close relationship between locus of control, coping style, and financial risk information avoidance suggests that risk information behaviour is not driven by strictly financial factors, but rather by emotional self- regulation.
Anna Blajer-Gołębiewska
University of Gdansk
Read the Original
This page is a summary of: Financial risk information avoidance, Economic Research-Ekonomska Istraživanja, January 2018, Taylor & Francis,
DOI: 10.1080/1331677x.2018.1439396.
You can read the full text:
Contributors
The following have contributed to this page
