The Influence Of Background Emotion On Stock Risky Decision-making

Previous studies of how emotion valence influences risky decision-making got different results,and researchers put forward two theories correspondingly:affective generalization theory and mood maintenance theory that are contradictory.In addition,the impact of emotion arousal on risky decision-making is in doubt.Therefore,the researcher wanted to conduct a correspondingly and thorough research.This research systematically explored the influence of background emotion on investors’stock risky decision-making by 3 studies,using method of big data analyzing.The researcher calculated every day’s background emotion by using emotional word match in every day’s hot news,and measured investors’ risky tendency by their purchasing behavior,which are proved to have good validity.In study 1,the researcher analyzed the influence of background emotion valence on stock risky decision-making,and the result showed:background emotion valence had main effect on investors’ risky decision-making,and investors in negative background were riskier,which supported mood maintenance theory;two emotion theories are applicable for different situations of risky decision-making,and due to the lack of confidence of investors,the mood maintenance theory was supported in stock situation.In study 2,the researcher analyzed the influence of background emotion arousal on investors’ stock risky decision-making,and the result showed:there were no main effect of background emotion arousal on stock risky decision-making,neither interaction between arousal and valence;except valence and arousal,the component of background emotion influenced investors’ stock risky decision-making as well,which may relate to emotion’s evolution adaptation function.In study 3,the researcher took into account several factors that may interfere the research results,carrying on corresponding studies by overcoming the influence of these factors,and the result showed:background emotion calculated from hot news is consistent with emotion that investors actually felt;after excluding the influence of dependent variable’s low validity,important holidays and major financial news,the market factors,the conclusions of study 1 and study 2 was still valid,illustrating the conclusion of the research is reliable.In sum,the present study draw the following conclusions:1)Mood maintenance theory were supported in stock risky decision-making situation,in other words,investors are risker in negative mood,which is related with their poor confidence.2)Arousal of background emotion had no main effect on risky decision-making,and the component of emotion was one of factors that influenced risky tendency,3)The conclusion of this research is stable,that was still came into existence after eliminating several factors which had an impact on the result.