Author

  • Toru Suehiro

    • Graduate School of Economics, Hosei University, Tokyo, Japan
    • Japan

  • Koichi Takeda

    • Faculty of Economics, Hosei University, Tokyo, Japan
    • Japan

  • Takashi Kozu

    • Ricoh Institute of Sustainability and Business, Tokyo, Japan
    • Japan

  • Toshihiko TAKEMURA

    • Faculty of Economics, Josai University, Japan
    • Japan

Abstract

We analyze the impact of the “consideration of future consequences” (CFC) on the amount of financial assets and the liabilities of individual investors by applying a Tobit model to data from a web-based survey. We find that impatient individuals with high CFC have fewer deposits and financial asset balances. We also examine the influence of the CFC-immediate (CFC-I) and CFC-future (CFC-F) sub-indicators often used in psychology as well as CFC on financial asset balances and liabilities. CFC-I show concern with immediate consequences and also an index related to ego depletion. We find that the higher the CFC-I, the lower the amount of deposits and financial asset balances. However, CFC-F is a sub-indicator designating lack of concern with future consequences; thus, the higher the CFC-F, the larger the debt.

Keywords

References

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How to Cite

Suehiro, T., Takeda, K., Kozu, T., & TAKEMURA, T. (2019). Influence of the Consideration of Future Consequences on Financial Behavior: The Case of Japanese Individual Investors. Journal of Economics and Behavioral Studies, 11(4(J), 54-60. https://doi.org/10.22610/jebs.v11i4(J).2920

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Copyright (c) 2019 Toru Suehiro, Koichi Takeda, Takashi Kozu, Toshihiko TAKEMURA (Author)

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Research Paper

Published in

Vol. 11 No. 4(J) (2019) Human Capital, Policy & Development View issue contents

Published

2019-09-26

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