Literature Review: Background And Review Of Motivation In Investment Morality

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Recommended: Psychological aspects of investment behaviour

2. Background / Review of the literature
The literature review will include four areas: (a) motivation in investment tendency, (b) emotion in investment tendency, (c) financial literacy in investment tendency, and (d) risk awareness in investment tendency. Individual investment behavior has recently attracted a great deal of attention from researchers in the fields of economics, psychology, and marketing.
Theme: factors that influence personal investment tendency
Subtheme: psychological factors
Motivation in investment tendency
Is there any motivation that drives college students to invest?
Investment is a kind of behavior with a general purpose of decentralizing risks and an expectation of gaining benefits from this behavior. Motivation, …show more content…

I really enjoy the feeling of stock investment.
4. Affected by the side of the students to do investment banking
5. Stock investment is one of the other ways to develop yourself
The above factors can be categorized based on motivational theories.
1. Hedonic or Pleasure Motivational Theories
Hedonic motivation refers to the influence of a person’s pleasure and pain receptors on their willingness to move towards a goal or away from a threat.
 【I really enjoy the feeling of stock investment.】
2. Cognitive or Need-to-Know Motivational Theories
This category emphasizes the cognitive processes involved within an individual. These theories posit that motivation is the result of active information-processing where an individual, subconsciously, or consciously positively evaluates the acting out of a specific behavior, thus is motivated.
【Combining theoretical study with practical operation to deepen the understanding of stock investment】
3. Growth or Actualization Motivational Theories
This category of motivational theories promotes the concept that motivation is the pursuit of activities that lead to "Growth", "Self-fulfillment", and "Self-Actualization".
 【Stock investment is one of the other ways to develop …show more content…

Two characters from the popular television and movie series Star Trek provide an answer. Mr. Spock-who is half Vulcan, a species that suppresses emotion and prizes logic-is presented as a rational thinker who thoroughly considers every piece of information. In contrast, Captain Kirk is likely to respond emotionally. Yet Kirk is portrayed as a good decision maker. Though Spock fully analyzes each situation, he gets too caught up in the details. Emotion allows Kirk to focus and enhances his ability to make critical decisions.
For example, in his book Irrational Exuberance, Robert Shiller states that investors ' emotional state "is no doubt one of the most important factors causing the bull market" recently experienced in the United States (2000, 57).
A vast psychological literature shows that emotional state can significantly affect decision making (Elster 1998; Hermalin and Isen 2000). In contrast to studies by some other financial economists, this article demonstrates that emotion actually enhances an individual 's ability to make rational choices (see also Frank 1988; Damasio 1994; LeDoux 1996; Elster 1998; Isen 1999). Emotion allows people to transcend the details, prioritize, and focus on the decision to be made. Emotion can drive behavior that is consistent with economic predictions.
Previous studies demonstrated that overconfidence decreases market efficiency and causes poor performance

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