The Effect Of Trustworthiness Impressions On Individual Investment Decisions From The Perspective Of Information Source Monitoring

Investment decision-making is a process of increasing or decreasing capital in market transactions based on reliable information.This study investigated how trust impressions from different sources influenced investment decisions.People usually tried to maximize benefits and minimize costs in economic activities,but they did not always act rationally.Fairness and risk aversion made them depend on trust in trading.Previous studies explored the relationship between trust and investment decision,but they mainly focused on organizational trust and stock trading.Few studies examined individual trust between investors and investees.This study aimed to understand how the reputation of investees and the trust impressions of investors affected investment decisions,and what information sources contributed to trust impressions.This study examined the source monitoring process of trust impressions,that is,how investors identified and distinguished trust impressions from faces and indirect information.Experiment 1 investigated how face-based trust impressions influenced investment decisions after receiving behavioral feedback,even when investors knew the behavior of investees.Experiment 2 examined the influence of multi-source trust impressions on investment decisions,that is,how investors changed their decisions after forming an impression based on indirect information(face and credit status)and receiving behavioral feedback.This study used an investment game paradigm to measure the investment amount of participants with different levels of trust,and a source monitoring model to explore the cognitive mechanism of trust in investment decision making.In conclusion,this study found that trust impressions from different sources affected investment decisions,and that the trustworthiness of impressions influenced investor behavior.The perception of face guided investor decisions in financial activities,but its effect weakened with descriptive credit information and behavioral experience.Investors were more likely to invest in people with good credit and return behavior.People invested more in people they perceived as trustworthy,especially after accurately identifying trustworthy targets,which were positively linked to investment.These findings have important implications for trust funds,market trading and investor decision-making.