%0 Journal Article %J Review of Quantitative Finance and Accounting %D 2019 %T Afraid of the stock market %A Lim, Yuree %A Kim, Kyoung Tae %K Decision making %K Investing %K Stocks %X This study demonstrates the way investors psychological traits influence their financial behaviors in the stock market. Results from the Health and Retirement Study show that anxious individuals are reluctant to participate in the stock market and have a lower level of risky investments. Anxiety’s effect is more pronounced for less educated investors, implying that anxiety about the unknown stock market drives this effect. Analysis of individual traumatic experiences as instruments for the current anxiety level suggests a causal effect of anxiety on investment decisions. %B Review of Quantitative Finance and Accounting %V 53 %P 773–810 %G eng %U https://link.springer.com/article/10.1007/s11156-018-0766-x %9 Journal %! Rev Quant Finan Acc %R 10.1007/s11156-018-0766-x