| Author: | DeFilippo, Vincent |
| Title: | The causal relationship of prospect theory on escation of commitment : a study of Hong Kong investors behavior |
| Advisors: | Cheng, Agnes (AF) Zhao, Jingran (AF) |
| Degree: | D.B.A. |
| Year: | 2019 |
| Subject: | Hong Kong Polytechnic University -- Dissertations Investments Investments -- Psychological aspects Decision making Stocks -- China -- Hong Kong |
| Department: | Faculty of Business |
| Pages: | cxxxiii pages : color illustrations |
| Language: | English |
| Abstract: | Investment decision making is a complex process through which investors evaluate various options, scenarios, and variables to determine the best course of action. In making these determinations, emotions and past experiences certainly play a role. However, traditional finance theories support that investors generally rely on a rational approach for investment decisions. Despite this theoretical perspective, oftentimes investors persist in a failing course of action even in the face of negative feedback. This concept has been termed Escalation of Commitment (EoC). Given that these EoC behaviors are contrary to traditional finance theory, it is therefore postulated that self-justification and loss aversion motivations drive such actions among investors. The following research study therefore examines this hypothesis through a quantitative descriptive study that surveyed 241 Hong Kong investors regarding their motivations for persisting in bad investment decisions. The results of the research support that self-justification and loss aversion are significant in driving EoC behaviors on an individual basis as well as collectively. Implications related to these findings are discussed in detail as are future directions for additional research. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 991022289506303411.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.67 MB | Adobe PDF | View/Open |
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