Mediating Role of Optimism Bias and Risk Perception Between Emotional Intelligence and Decision-Making: A Serial Mediation Model
The commodity market plays a vital role in boosting the economy. Investors make decisions based on market knowledge and ignore cognitive biases. These cognitive biases or judgment errors have a significant effect on investment decisions. Therefore, this study aimed to investigate the effect of emoti...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2022-06-01
|
| Series: | Frontiers in Psychology |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fpsyg.2022.914649/full |
| _version_ | 1818467886384021504 |
|---|---|
| author | Chaoran Chen Muhammad Ishfaq Farzana Ashraf Ayesha Sarfaraz Kan Wang |
| author_facet | Chaoran Chen Muhammad Ishfaq Farzana Ashraf Ayesha Sarfaraz Kan Wang |
| author_sort | Chaoran Chen |
| collection | DOAJ |
| description | The commodity market plays a vital role in boosting the economy. Investors make decisions based on market knowledge and ignore cognitive biases. These cognitive biases or judgment errors have a significant effect on investment decisions. Therefore, this study aimed to investigate the effect of emotional intelligence on decision-making. In addition, optimism bias and risk perception are the intervening variables between emotional intelligence and decision-making. So, this study contributes to the body of knowledge by examining the mediating role of optimism bias and risk perception. The data were collected from the respondents of the commodity market and the 370 questionnaires were distributed among the investors, of which 337 respondents gave their feedback. The convenience base sampling technique is used due to the easy access of respondents, time factor, and cost factor. Data entered into the SPSS Statistics Version 26 and PROCESS macro model 6 were used for serial mediation. AMOS was used for the validity and model-fit analysis. The results of this study aligned with the literature that there is a significant effect of emotional intelligence on decision-making. It also observed that optimism bias has a positive effect on decision-making. The finding of this study will be helpful for the brokers, the government, and especially the investors. This study also proposed that future studies on the stock exchange and real estate market comparative analysis can be conducted. |
| first_indexed | 2024-04-13T21:06:23Z |
| format | Article |
| id | doaj.art-1ffab1d2e611489fb096a7d8007180fb |
| institution | Directory Open Access Journal |
| issn | 1664-1078 |
| language | English |
| last_indexed | 2024-04-13T21:06:23Z |
| publishDate | 2022-06-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Psychology |
| spelling | doaj.art-1ffab1d2e611489fb096a7d8007180fb2022-12-22T02:29:57ZengFrontiers Media S.A.Frontiers in Psychology1664-10782022-06-011310.3389/fpsyg.2022.914649914649Mediating Role of Optimism Bias and Risk Perception Between Emotional Intelligence and Decision-Making: A Serial Mediation ModelChaoran Chen0Muhammad Ishfaq1Farzana Ashraf2Ayesha Sarfaraz3Kan Wang4School of Economics, Liaoning University, Shenyang, ChinaDepartment of Management Sciences, Riphah International University, Faisalabad, PakistanDepartment of Humanities, COMSATS University Islamabad, Lahore, PakistanDepartment of Human Development, University of Home Economics Lahore, Lahore, PakistanSchool of Software, Henan University, Kaifeng, ChinaThe commodity market plays a vital role in boosting the economy. Investors make decisions based on market knowledge and ignore cognitive biases. These cognitive biases or judgment errors have a significant effect on investment decisions. Therefore, this study aimed to investigate the effect of emotional intelligence on decision-making. In addition, optimism bias and risk perception are the intervening variables between emotional intelligence and decision-making. So, this study contributes to the body of knowledge by examining the mediating role of optimism bias and risk perception. The data were collected from the respondents of the commodity market and the 370 questionnaires were distributed among the investors, of which 337 respondents gave their feedback. The convenience base sampling technique is used due to the easy access of respondents, time factor, and cost factor. Data entered into the SPSS Statistics Version 26 and PROCESS macro model 6 were used for serial mediation. AMOS was used for the validity and model-fit analysis. The results of this study aligned with the literature that there is a significant effect of emotional intelligence on decision-making. It also observed that optimism bias has a positive effect on decision-making. The finding of this study will be helpful for the brokers, the government, and especially the investors. This study also proposed that future studies on the stock exchange and real estate market comparative analysis can be conducted.https://www.frontiersin.org/articles/10.3389/fpsyg.2022.914649/fullemotional intelligenceoptimism biasrisk perceptioninvestment decisionscommodity market |
| spellingShingle | Chaoran Chen Muhammad Ishfaq Farzana Ashraf Ayesha Sarfaraz Kan Wang Mediating Role of Optimism Bias and Risk Perception Between Emotional Intelligence and Decision-Making: A Serial Mediation Model Frontiers in Psychology emotional intelligence optimism bias risk perception investment decisions commodity market |
| title | Mediating Role of Optimism Bias and Risk Perception Between Emotional Intelligence and Decision-Making: A Serial Mediation Model |
| title_full | Mediating Role of Optimism Bias and Risk Perception Between Emotional Intelligence and Decision-Making: A Serial Mediation Model |
| title_fullStr | Mediating Role of Optimism Bias and Risk Perception Between Emotional Intelligence and Decision-Making: A Serial Mediation Model |
| title_full_unstemmed | Mediating Role of Optimism Bias and Risk Perception Between Emotional Intelligence and Decision-Making: A Serial Mediation Model |
| title_short | Mediating Role of Optimism Bias and Risk Perception Between Emotional Intelligence and Decision-Making: A Serial Mediation Model |
| title_sort | mediating role of optimism bias and risk perception between emotional intelligence and decision making a serial mediation model |
| topic | emotional intelligence optimism bias risk perception investment decisions commodity market |
| url | https://www.frontiersin.org/articles/10.3389/fpsyg.2022.914649/full |
| work_keys_str_mv | AT chaoranchen mediatingroleofoptimismbiasandriskperceptionbetweenemotionalintelligenceanddecisionmakingaserialmediationmodel AT muhammadishfaq mediatingroleofoptimismbiasandriskperceptionbetweenemotionalintelligenceanddecisionmakingaserialmediationmodel AT farzanaashraf mediatingroleofoptimismbiasandriskperceptionbetweenemotionalintelligenceanddecisionmakingaserialmediationmodel AT ayeshasarfaraz mediatingroleofoptimismbiasandriskperceptionbetweenemotionalintelligenceanddecisionmakingaserialmediationmodel AT kanwang mediatingroleofoptimismbiasandriskperceptionbetweenemotionalintelligenceanddecisionmakingaserialmediationmodel |