Mediational Effects of Sensation Seeking on the Age and Financial Risk-Taking Relationship

Department

Psychology

Document Type

Article

Publication Date

12-2009

Abstract

The current study examined the potential mediating role of sensation seeking in the well-established negative relationship between age and financial risk-taking. A total of 299 participants, aged 17–90years, allocated hypothetical money into mutual funds that varied in risk and completed a sensation seeking measure. Hierarchical multiple regressions revealed that the amount of variability age accounted for in risk-taking (4.1%; β =−.22) was significantly reduced when sensation seeking was controlled for (0.8%; β =−.12). A Sobel test revealed that sensation seeking fully mediated the aforementioned relationship. Results suggest sensation seeking’s role as a mediator in more physiologically arousing risk-taking contexts (e.g., surfing). Discussion recommends investigating potential biologically and cognitively-rooted mediators and moderators of the age and risk-taking relationship.

Journal Title

Personality and Individual Differences

Journal ISSN

0191-8869

Volume

47

Issue

8

First Page

917

Last Page

921

Digital Object Identifier (DOI)

10.1016/j.paid.2009.07.016

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