A learned helplessness model of investment intentions. Implications for financial preparation for old age

Abstract

Objectives: This thesis investigated the applicability of the learned helplessness model to low-risk investment intention and its generality to high-risk, saving and information seeking intentions. Methods: This research used questionnaires to collect information about history of uncontrollability (past overall return and loss ratio), investment, saving and information seeking intentions, and measure attributional style by Attributional Style Questionnaire (ASQ). The 167 participants were all Hong Kong Chinese, aged 25-49 and had investment experiences on low-risk investments (bonds and large-company stocks) in the past two years. Results: The hierarchical regression analysis (p< .05) supported that learned helplessness decreased intended magnitude (in term of percentage of disposable income) but not likelihood in low-risk investments. The learned helplessness in low-risk investments was not generalized to high-risk, saving and information seeking intentions except information seeking through information intermediary (i.e. agents / brokers). Conclusions: This thesis supports the applicability of learned helplessness to low-risk investment intention. The generality of the learned helplessness is limited. This thesis has implications for financial preparation for old age.