Investment Behavior of Orphan and Nonorphan Investors During COVID-19 in Shanghai Stock Market

Purpose: Orphaned children carry many psychological and emotional issues with them throughout their lives, which influence every decision they make, including investment decisions. A lack of self-determination and low confidence may make orphans make more risky decisions than their nonorphan counterparts. In this study, we aimed to see how this risky behavior was reflected in investment choices during the COVID-19 pandemic. Methods: A well-structured questionnaire was distributed to 230 adult investors (130 orphans and 100 nonorphans) between January 22 and March 13, 2020. Results: Orphans were found to be risk-takers during the COVID-19 pandemic, as hypothe-sized from their childhood history. Moreover, female investors showed more sensible (less risky) behavior than male investors when investing in fixed-income securities. Income and age showed significant inverse relationships with risk tolerance, while education showed a positive but insignificant effect. Conclusion: This study indicates that orphan investors enjoy taking risks and their behavior toward risk remains consistent, even in abnormal conditions, such as a global pandemic. It also suggests that their risk-taking behavior remains stable from orphanhood through to adulthood, contradicting many reports that orphans make reasonable decisions in adulthood.