Political Identity and Financial Risk Taking: Insights from Social Dominance Orientation
Kyuhong Han, Jihye Jung, Vikas Mittal, Jinyong Daniel Zyung, Hajo Adam
Journal of Marketing Research · 2019 · Volume 56 · Issue 4
Abstract
This article investigates how people’s political identity is associated with their financial risk taking. The authors argue that conservatives’ financial risk taking increases as their self-efficacy increases because of their greater social dominance orientation, whereas liberals’ financial risk taking is invariant to their self-efficacy. This central hypothesis is verified in six studies using different measures of political identity, self-efficacy, and financial risk taking. The studies also use different samples of U.S. consumers, including online panels, a large-scale data set spanning five election cycles, and a secondary data set of political donations made by managers at companies. Finally, the authors articulate and demonstrate the mediating effect of individuals’ focus on the upside potential of a decision among conservatives but not liberals.
Keywords
financial risk taking, political identity, self-efficacy, social dominance orientation, upside potential
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