The influence of alcohol on investment propensity with overconfidence and risk perception as mediator variables
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2025-07-07
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en
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This study aimed to investigate if there is an influence of alcohol intoxication on investment propensity. The study not only investigated a direct effect from alcohol on investment propensity but also an indirect effect, through overconfidence and risk perception. An experiment was conducted. The experiment had a within-subject design and was taken in a bar setting. People filled in the same survey twice. The first time sober but with the intention to drink alcohol. The second time after consuming two alcoholic beverages. Overconfidence was measured using an adapted version of the block counting test from Bregu et al. (2017), risk perception and investment propensity were measured by showing graphs where people had to indicate their perceived risk and their investment propensity, inspired by Holzmeister et al. (2019). The difference scores, after alcohol intoxication answers minus sober answers, were aggregated. Those aggregated different scores showed that there is no direct effect from alcohol intoxication on investment propensity. The study indicates an indirect effect as significant relationships exists between alcohol intoxication and overconfidence, between overconfidence and risk perception and between risk perception and risk-taking.
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Faculteit der Managementwetenschappen