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Lookup NU author(s): Professor Darren DuxburyORCiD
This is the authors' accepted manuscript of an article that has been published in its final definitive form by Taylor and Francis , 2020.
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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.
Author(s): Duxbury D, Gärling T, Gamble A, Klass V
Publication type: Article
Publication status: Published
Journal: The European Journal of Finance
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
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