Online social networking increases financial risk-taking

Publication Type:
Conference Proceeding
Citation:
2014, pp. 1217 - 1217 (1)
Issue Date:
2014-12-01
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We posit that online social networking such as Facebook increases financial risk-taking because online social circles act as “buffers” against possible financial losses. One field study along with one lab study support our hypothesis. The effects only occur when people perceive their online social circles to be of high quality and when they have a collectivistic self-orientation. This research further provides theoretical richness to the cushion hypothesis by drawing on social capital theory in the sociological literature to extend the hypothesis to an online setting.
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