Joe Kim Examines How Stock Portfolio Changes Shape Employee Behavior
Joe Kim Examines How Stock Portfolio Changes Shape Employee Behavior
Joe Kim, Assistant Professor in the Department of Managerial Studies at UIC Business, has published his paper, “When the Market Moves: How Stock Market Fluctuations Shape Risk-Related Behaviors at Work,” in the Journal of Applied Psychology. The journal is included in the Financial Times 50 (FT50) list and is one of eight top-tier journals used in the TAMUGA ranking of management research productivity. Kim coauthored the paper with Joel Koopman of Texas A&M University, Kyoung Yong Kim of Villanova University, Ran Ahn of UIC Business and Youngduk Lee of the University of Hong Kong.
The study examines whether changes in the value of employees’ personal stock holdings during the morning affect how they approach risk at work. Although investing happens outside the workplace, employees can check their portfolios during the workday, when a gain or loss may shape their willingness to take uncertain actions.
The researchers followed 96 full-time employees in South Korea who invested in stocks, collecting surveys across 10 workdays. On mornings when employees’ holdings performed more positively than usual, they reported a greater willingness to take risks. This was subsequently associated with more risk-taking behavior and speaking up with ideas or concerns at work. The relationship was weaker for employees with a stronger long-term orientation.
Two additional experiments examined why this happens. More positive changes in stock holdings increased participants’ focus on pursuing gains, while more negative changes increased their focus on avoiding losses. These shifts, in turn, shaped their willingness to take risks.
The findings show how everyday financial experiences can carry over into work, influencing how employees approach uncertain decisions and whether they speak up during the workday.