Effects of Age, Sex, and Neuropsychological Performance on Financial Decision-Making
نویسندگان
چکیده
The capacity to make sound financial decisions across the lifespan is critical for interpersonal, occupational, and psychological health and success. In the present study, we explored how healthy younger and older adults make a series of increasingly complex financial decisions. One-hundred sixteen healthy older adults, aged 56-90 years, and 102 college undergraduates, completed the Financial Decision-Making Questionnaire, which requires selecting and justifying financial choices across four hypothetical scenarios and answering questions pertaining to financial knowledge. Results indicated that Older participants significantly outperformed Younger participants on a multiple-choice test of acquired financial knowledge. However, after controlling for such pre-existing knowledge, several age effects were observed. For example, Older participants were more likely to make immediate investment decisions, whereas Younger participants exhibited a preference for delaying decision-making pending additional information. Older participants also rated themselves as more concerned with avoiding monetary loss (i.e., a prevention orientation), whereas Younger participants reported greater interest in financial gain (i.e., a promotion orientation). In terms of sex differences, Older Males were more likely to pay credit card bills and utilize savings accounts than were Older Females. Multiple positive correlations were observed between Older participants' financial decision-making ability and performance on neuropsychological measures of non-verbal intellect and executive functioning. Lastly, the ability to justify one's financial decisions declined with age, among the Older participants. Several of the aforementioned results parallel findings from the medical decision-making literature, suggesting that older adults make decisions in a manner that conserves diminishing cognitive resources.
منابع مشابه
The Effects of the CEO’s Perceptual Bias in Economic Decision-Making and Judgment on the Capabilities of the Financial Reporting Quality
The current research sets out to identify and scrutinize the impact of the CEO’s perceptual biases in judgment and economic decision-making on the reporting quality of the firms listed on the Tehran Stock Exchange. Adopting a mixed method, the present study first seeks to detect the components and indices of CEO’s perceptual biases via critical appraisal and with the special participation of 10...
متن کاملStudy of Cognitive Functions of Continuous Attention, Decision-Making and Response Inhibition in Subjects withMethamphetamine Dependence
Background and Objectives: Drug abuse can have long- and short-term effects on the cognitive function of individuals due to changes in brain structure and function. These effects often manifest themselves in the form of chronic and acute neuropsychological abnormalities. The purpose of this study was to investigate several cognitive functions, i.e., continuous attention, decision-making, and re...
متن کاملThe Investigation on Effect of Negative News Frequency on decreasing in Ethical Behavior of Accountants
The purpose of this study was to investigate the effect of the publishing of negative financial news caused by financial scandals on the level of ethical decision making in the field of accounting and finance. The study was applied, follow-up and semi-experimental research. According to the research objectives, a semi-experimental research project has been used including two experimental and ...
متن کاملStrategic financial decision making in comprehensive public universities
Experimental results and theoretical analysis confirms that financial strategic decisions due to the effect of the policy and organizational behavior is very important. The aim of this paper was to study financial strategic making decision and decision-making processes at University of Tehran. Data was collected through qualitative research methods. The population of the study was all the exper...
متن کاملThe effects of normal aging on multiple aspects of financial decision-making
OBJECTIVES Financial decision-making (FDM) is crucial for independent living. Due to cognitive decline that accompanies normal aging, older adults might have difficulties in some aspects of FDM. However, an improved knowledge, personal experience and affective decision-making, which are also related to normal aging, may lead to a stable or even improved age-related performance in some other asp...
متن کامل