Trauma and Investment Horizon : Evidence from a Representative China Equity Investor Behavior Survey

Results from a large sample of individual Chinese investors demonstrate that they were more likely to trade stocks for short-term speculation after experiencing trauma such as natural disasters, serious illness, or death in their immediate family. They exhibited higher impulsivity, a greater desire for immediate gratification, a greater willingness to follow trends, and more risk-taking behaviors as a result of the trauma experience. The data also show that the relationship between trauma experience and a short investment horizon is less pronounced for older and married individuals