Toggle Main Menu Toggle Search

Open Access padlockePrints

How Emotions Influence Behavior in Financial Markets: A Conceptual Analysis and Emotion-based Account of Buy-Sell Preferences

Lookup NU author(s): Professor Darren Duxbury

Downloads


Licence

This is the authors' accepted manuscript of an article that has been published in its final definitive form by Taylor and Francis , 2020.

For re-use rights please refer to the publisher's terms and conditions.


Abstract

We develop a conceptual analysis and account of how emotions influence behavior in financial markets. To motivate our approach and to establish the need for such research, we first review the increasingly important literature on emotions in financial markets. While emotions influence investors in financial markets, there is a lack of precision concerning the exact nature of these influences. To remedy this, we identify and address a number of issues deriving from the current state of the finance literature. One issue concerns the lack of clarity in defining different emotion constructs. Another is the lack of a general emotion-based account of financial behavior. Our contribution is a classification of emotion-related phenomena and an emotion-based account of how anticipatory and anticipated emotions interact to determine investors’ buy and sell preferences in asset markets. Preliminary experimental results support our emotion-based account.


Publication metadata

Author(s): Duxbury D, Gärling T, Gamble A, Klass V

Publication type: Article

Publication status: Published

Journal: The European Journal of Finance

Year: 2020

Issue: ePub ahead of Print

Online publication date: 19/03/2020

Acceptance date: 02/03/2020

Date deposited: 09/03/2020

ISSN (print): 1351-847X

ISSN (electronic): 1466-4364

Publisher: Taylor and Francis

URL: https://doi.org/10.1080/1351847X.2020.1742758

DOI: 10.1080/1351847X.2020.1742758


Altmetrics

Altmetrics provided by Altmetric


Actions

Find at Newcastle University icon    Link to this publication


Share