This study reveals how fear of missing out and loss aversion shape gold investment choices in Vietnam, suggesting significant implications for behavioral finance.
This study investigates the influence of FOMO, loss aversion, and herd behavior on gold investment decisions in the Vietnamese market. Employing data collected from 727 investors and the Partial Least Squares Structural Equation Modeling (PLS-SEM) method, the analysis results confirm the pivotal role of FOMO, with both direct and indirect impacts on gold investment decisions. Notably, both loss aversion and herd behavior positively influence FOMO, thereby indirectly encouraging relatively hasty and inadequately considered investment decisions. The study also finds that FOMO has a negative relationship with anticipated regret but is positively correlated with subjective expected pleasure. Furthermore, as determined through Multi-Group Analysis (MGA), psychological messages featuring “self-decision” or “risk warning” demonstrate a significant moderating role, potentially reducing or enhancing the influence of FOMO on investment decisions. These findings contribute to enriching behavioral finance theory and provide an empirical basis for developing effective risk management policies and gold market regulation aimed at mitigating the negative impacts of FOMO.
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Nguyễn et al. (2025) studied this question.
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