Title: Does mindfulness enhance stock trading performance?: the moderating and mediating effects of impulse control difficulties

Authors: Peerayuth Charoensukmongkol; Vesarach Aumeboonsuke

Addresses: International College, National Institute of Development Administration, 118 Moo 3, Sereethai Road, Klong-Chan, Bangkapi, Bangkok 10240, Thailand ' International College, National Institute of Development Administration, 118 Moo 3, Sereethai Road, Klong-Chan, Bangkapi, Bangkok 10240, Thailand

Abstract: This research investigates the contribution of mindfulness on performance of stock traders. The authors focus on the role of mindfulness in helping individuals lower impulsive behaviours when they trade stocks. Survey data were collected from 120 independent traders and 73 professional traders in Thailand (total N = 193). The analysis from partial least squares regression found that impulse control difficulties mediated the link between mindfulness and stock trading performance. This suggested that individuals with higher mindfulness measure tended to experience lower impulse control difficulties problem, and subsequently exhibited better stock trading performance. However, the analysis of the moderating effect revealed that the positive contribution of mindfulness on stock trading performance is only present for those with high impulse control difficulties. Surprisingly, mindfulness appeared to lower trading performance of traders who did not have impulse control difficulties.

Keywords: mindfulness; emotional control; impulsive behaviour; decision making; partial least squares; PLS regression; stock trading; stock traders; emotions; performance evaluation; stock markets; Thailand; impulse control; trading performance.

DOI: 10.1504/IJWOE.2016.10002739

International Journal of Work Organisation and Emotion, 2016 Vol.7 No.4, pp.257 - 274

Received: 04 Nov 2015
Accepted: 08 Jun 2016

Published online: 25 Jan 2017 *

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