Anticipatory Emotion and Risky Financial Behavior: The Moderating Role of Regulatory Focus

Emotions that are presently experienced when anticipating an outcome are known as anticipatory emotions. The more positive the anticipatory emotions are, the more likely an individual is to engage in risky behavior. Previous research has suggested
that individuals with strong promotion-focused self-regulation are also more prone to risk-taking. However, the potential moderating role of regulatory focus on the effect of emotion on risky financial behavior was unclear. This study aimed to investigate
whether the relationship between anticipatory emotion and risky financial behavior would be dependent on individual differences in promotion or prevention regulatory focus. Using a cross-sectional design, participants (N = 417), aged 21-35, minimum
high school graduate, and having income completed an online survey assessing anticipatory emotion, regulatory focus, and risky financial behavior. The moderation effect was tested using PROCESS Model 1. We found that anticipatory emotion was
significantly and positively correlated to risky financial behavior. Moreover, promotion-focused self-regulation exacerbated the effect of anticipatory emotion on risky behavior in the economic domain. However, the prevention regulatory focus did not exert a significant moderating effect on the relationship. The implications of these findings highlight the critical role of motivational orientation focused on reward in understanding emotional influence on risky behavior.