<abstract xmlns="http://www.w3.org/1999/xhtml">

<sec><h3>Research background</h3>
<p>Deciding to trade in financial markets is psychologically difficult and wearing. Investors want to find rational justifications for the correctness of their decisions. However, there is uncertainty in financial markets. This uncertainty does not allow for mathematical calculations. In such case, feelings get involved in the decision process.</p>
</sec>
<sec><h3>Purpose</h3>
<p>This study aimed to investigate the mediating effect of two motivational systems (loss aversion and pleasure-seeking) on the effect of phantasy, which is fantasies that are based on an individual’s early infancy, that develop and exist throughout life, but are not consciously aware of by the individual, on financial risk tolerance, and to analyze the moderating effect of confidence in the effect of these two motivational systems on financial risk tolerance.</p>
</sec>
<sec><h3>Research methodology</h3>
<p>Data were collected from 1,643 subjects from Turkey in November–December 2021 using a questionnaire. The link to the survey prepared by the researchers was created using Google Survey and shared by our graduates’ students on their social networks.</p>
</sec>
<sec><h3>Results</h3>
<p>According to the results, phantasy had a positive and significant effect on both motivational systems and financial risk tolerance. Simultaneously, two motivational systems have a mediating effect on the relationship between phantasy and financial risk tolerance. Confidence, on the other hand, has a moderating effect on the effect of these two motivational systems on financial risk tolerance. In addition, as expected, phantasy showed its effect on all individuals without differing according to demographic variables. Despite this, loss aversion and low financial risk tolerance were higher in female and married individuals. While pleasure-seeking is higher in males, it does not differ according to marital status.</p>
</sec>
<sec><h3>Novelty</h3>
<p>Modeling unconscious processes, motivational systems and individual characteristics such as confidence together will provide important and useful findings for both investors and market authority in terms of showing the effect of unconscious and cognitive factors on financial risk tolerance.</p>
</sec>
</abstract>

Research background
Deciding to trade in financial markets is psychologically difficult and wearing. Investors want to find rational justifications for the correctness of their decisions. However, there is uncertainty in financial markets. This uncertainty does not allow for mathematical calculations. In such case, feelings get involved in the decision process.

Purpose
This study aimed to investigate the mediating effect of two motivational systems (loss aversion and pleasure-seeking) on the effect of phantasy, which is fantasies that are based on an individual’s early infancy, that develop and exist throughout life, but are not consciously aware of by the individual, on financial risk tolerance, and to analyze the moderating effect of confidence in the effect of these two motivational systems on financial risk tolerance.

Research methodology
Data were collected from 1,643 subjects from Turkey in November–December 2021 using a questionnaire. The link to the survey prepared by the researchers was created using Google Survey and shared by our graduates’ students on their social networks.

Results
According to the results, phantasy had a positive and significant effect on both motivational systems and financial risk tolerance. Simultaneously, two motivational systems have a mediating effect on the relationship between phantasy and financial risk tolerance. Confidence, on the other hand, has a moderating effect on the effect of these two motivational systems on financial risk tolerance. In addition, as expected, phantasy showed its effect on all individuals without differing according to demographic variables. Despite this, loss aversion and low financial risk tolerance were higher in female and married individuals. While pleasure-seeking is higher in males, it does not differ according to marital status.

Novelty
Modeling unconscious processes, motivational systems and individual characteristics such as confidence together will provide important and useful findings for both investors and market authority in terms of showing the effect of unconscious and cognitive factors on financial risk tolerance.

Mediating Effect of Pleasure-Seeking and Loss Aversion in the Relationship Between Phantasy and Financial Risk Tolerance and the Moderating Role of Confidence

Faculty of Economics and Administrative Sciences/Business Department

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

Research background
Deciding to trade in financial markets is psychologically difficult and wearing. Investors want to find rational justifications for the...

Mediating Effect of Pleasure-Seeking and Loss Aversion in the Relationship Between Phantasy and Financial Risk Tolerance and the Moderating Role of Confidence

Published Online: Dec 09, 2023

Page range: 24 - 44

Received: Apr 22, 2023

Accepted: Jul 15, 2023

DOI: https://doi.org/10.2478/foli-2023-0017

Keywords
Phantasy, Loss Aversion, Pleasure Seeking, Confidence, Financial Risk Tolerance

© 2023 Selim Aren et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

Mediating Effect of Pleasure-Seeking and Loss Aversion in the Relationship Between Phantasy and Financial Risk Tolerance and the Moderating Role of Confidence

Published Online: Dec 09, 2023

Page range: 24 - 44

Received: Apr 22, 2023

Accepted: Jul 15, 2023

DOI: https://doi.org/10.2478/foli-2023-0017

KeywordsPhantasy, Loss Aversion, Pleasure Seeking, Confidence, Financial Risk Tolerance

© 2023 Selim Aren et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

Keywords
Phantasy, Loss Aversion, Pleasure Seeking, Confidence, Financial Risk Tolerance