Detail Cash Is King: Time Preference of Chinese investors and Cancellation Axiom in the Intertemporal Choice   Oleh:  Wang, Harry Hainan ; Wu, Michael Shengtao ; Liu, Jiechen ; Tang, Lindi Jenis: Article from Proceeding Dalam koleksi: American Society of Business and Behavioral Sciences (ASBBS) Proceedings: Feb 2014; Vol. 21 (1), page 709 - 717. Fulltext: 61 - ASBBS 2014 - p709.pdf (493.09KB) Isi artikel Previous research argued that the cancellation axiom, deriving from the additive assumption and independence assumption, could be violated in the intertemporal choice (Rao & Li, 2011). Nevertheless, Rao and Li's (2011) conclusion was based on the participants' responses who were all university students. The present research was designed to reexamine the cancellation axiom through the intertemporal choice of Chinese professional investors (e.g. stock trader, asset manager), and found that Chinese investors were prone to choosing the immediate smaller utility rather than the delayed larger utility (?1,000,000 now vs. ?5,000,000 in10 years), independent of the common elements of the two options (e.g., ?6,000,000 in 1 year, or -2,000,000 in 11 years). The present findings suggested that the cancellation axiom in intertemporal choice still holds for Chinese investors, implying the domain-specific nature of risk communications, and also reflected a "Cash is King" effect explained by the liquidity preference theory (Keynes, 1936). Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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