Handbook of Research on Behavioral Finance and Investment Strategies: Decision Making in the Financial Industry [1 ed.] 1466674849, 9781466674844

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Handbook of Research on Behavioral Finance and Investment Strategies: Decision Making in the Financial Industry Zeynep Copur Hacettepe University, Turkey

A volume in the Advances in Finance, Accounting, and Economics (AFAE) Book Series

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Copyright © 2015 by IGI Global. All rights reserved. No part of this publication may be reproduced, stored or distributed in any form or by any means, electronic or mechanical, including photocopying, without written permission from the publisher. Product or company names used in this set are for identification purposes only. Inclusion of the names of the products or companies does not indicate a claim of ownership by IGI Global of the trademark or registered trademark. Library of Congress Cataloging-in-Publication Data Handbook of research on behavioral finance and investment strategies : decision making in the financial industry / Zeynep Copur, editor. pages cm Includes bibliographical references and index. Summary: “This book presents an interdisciplinary, comparative, and competitive analysis of the thought processes and planning necessary for individual and corporate economic management”-- Provided by publisher. ISBN 978-1-4666-7484-4 (hardcover : alk. paper) -- ISBN 978-1-4666-7485-1 (ebook) 1. Investments--Psychological aspects. 2. Investments--Decision making. I. Copur, Zeynep, 1968HG4515.15.H36 2015 332.01’9--dc23 2014045040

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Agricultural Management Strategies in a Changing Economy Gabriel Popescu (Bucharest Academy of Economic Studies, Romania) and Andrei Jean-Vasile (Petroleum - Gas University of Ploiesti, Romania) Business Science Reference • copyright 2015 • 439pp • H/C (ISBN: 9781466675216) • US $225.00 (our price) Handbook of Research on In-Country Determinants and Implications of Foreign Land Acquisitions Evans Osabuohien (Covenant University, Nigeria & German Development Institute, Germany) Business Science Reference • copyright 2015 • 430pp • H/C (ISBN: 9781466674059) • US $265.00 (our price) Handbook of Research on Strategic Developments and Regulatory Practice in Global Finance Özlem Olgu (Koç University, Turkey) Hasan Dinçer (Beykent University, Turkey) and Ümit Hacıoğlu (Beykent University, Turkey) Business Science Reference • copyright 2015 • 430pp • H/C (ISBN: 9781466672888) • US $235.00 (our price) Regional Economic Integration and the Global Financial System Engin Sorhun (Istanbul 29 Mayis University, Turkey) Ümit Hacıoğlu (Beykent University, Turkey) and Hasan Dinçer (Beykent University, Turkey) Business Science Reference • copyright 2015 • 337pp • H/C (ISBN: 9781466673083) • US $200.00 (our price) Urbanization and Migration as Factors Affecting Global Economic Development Denis Ushakov (International College Suan Sunandha Rajabhat University, Thailand & Russian Academy of National Economy and Public Administration–South branch, Russia) Information Science Reference • copyright 2015 • 317pp • H/C (ISBN: 9781466673281) • US $215.00 (our price) Handbook of Research on Developing Sustainable Value in Economics, Finance, and Marketing Ulas Akkucuk (Bogazici University, Turkey) Business Science Reference • copyright 2015 • 550pp • H/C (ISBN: 9781466666351) • US $345.00 (our price) Handbook of Research on Economic Growth and Technological Change in Latin America Bryan Christiansen (PryMarke, LLC, USA) Business Science Reference • copyright 2014 • 504pp • H/C (ISBN: 9781466662247) • US $295.00 (our price) Impacts of the Knowledge Society on Economic and Social Growth in Africa Lloyd G. Adu Amoah (Ashesi University, Ghana & Strategy3, Ghana) Information Science Reference • copyright 2014 • 336pp • H/C (ISBN: 9781466658448) • US $195.00 (our price)

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Editorial Advisory Board Hasan Dinçer, Beykent University, Turkey Michael S. Gutter, University of Florida, USA Ümit Hacıoğlu, Beykent University, Turkey Tahira Hira, Iowa State University, USA Mehmet Baha Karan, Hacettepe University, Turkey Angela C. Lyons, University of Illinois, USA Jing Jian Xiao, University of Rhode Island, USA Tansel Yılmazer, The Ohio State University, USA

List of Reviewers Ayfer Aydıner, Hacettepe University, Turkey Aybala Demirci, Gazi University, Turkey Sibel Erkal, Hacettepe University, Turkey Emine Özmete, Ankara University, Turkey Hande Şahin, Kırıkkale University, Turkey

List of Contributors

Akdağ, Yaşar / Hakkari University, Turkey ....................................................................................... 284 Akel, Veli / Erciyes University, Turkey ............................................................................................... 315 Akpolat, Nuray / Nevşehir Provincial National Education Directorate, Turkey ................................ 54 Aksoy, Aybala Demirci / Gazi Üniversitesi, Turkey ............................................................................ 38 Arun, Korhan / Namık Kemal University, Turkey ............................................................................. 393 Ataer, Sinan / Istanbul University, Turkey ......................................................................................... 329 Boylu, Ayfer Aydiner / Hacettepe University, Turkey ....................................................................... 236 Cavlak, Hakan / Namık Kemal University, Turkey ............................................................................ 170 Cavlak, Neslihan / Namık Kemal University, Turkey......................................................................... 170 Cesur-Kiliçaslan, Seher / İstanbul Arel University, Turkey ................................................................ 25 Çetin, Murat / Namık Kemal University, Turkey ........................................................................ 297,315 Dinçer, Hasan / Istanbul Medipol University, Turkey.......................................................... 338,378,405 Ecevit, Eyyup / Erciyes University, Turkey ........................................................................................ 297 Erkal, Sibel / Hacettepe University, Turkey ....................................................................................... 116 Evangelos, Vasileiou / University of the Aegean, Greece .................................................................. 255 Grable, John E. / University of Georgia, USA .................................................................................. 201 Gümüş, Sevilay / Hacettepe University, Turkey................................................................................. 350 Gunay, Gulay / Karabuk University, Turkey ...................................................................................... 236 Günaydin, Davuthan / Namık Kemal University, Turkey........................................................... 170,297 Gunda, Abdulhamid Mauyag / Namık Kemal University, Turkey ................................................... 271 Hacioğlu, Burcu / Society for the Study of Business and Finance, Turkey ........................................ 378 Hacıoğlu, Ümit / Istanbul Medipol University, Turkey ........................................................ 338,378,405 Heo, Wookjae / University of Georgia, USA ..................................................................................... 201 Işık, Abdulkadir / Namık Kemal University, Turkey ......................................................................... 271 Işik, Hayriye / Namık Kemal University, Turkey ............................................................................... 284 Işik, Toprak / Independent Scholar, Turkey ......................................................................................... 25 Kandır, Serkan Yılmaz / Çukurova University, Turkey .................................................................... 315 Kapoor, Sujata / Jaypee Business School, India ................................................................................... 1 Kasemsap, Kijpokin / Suan Sunandha Rajabhat University, Thailand .............................................. 94 Moss, Vuyisani / National Department of Human Settlements, South Africa ................................... 338 Oğuz, Ahmet / Karabuk University, Turkey ....................................................................................... 236 Özdemir, Aydın / Beykent University, Turkey ................................................................................... 405 Özel, Gamze / Hacettepe University, Turkey ..................................................................................... 188 Özmete, Emine / Ankara University, Turkey ..................................................................................... 127 Prosad, Jaya M. / Jaypee Business School, India.................................................................................. 1

Ruiz-Menjivar, Jorge / University of Georgia, USA ......................................................................... 201 Sabri, Mohamad Fazli / Universiti Putra, Malaysia......................................................................... 221 Sahi, Shalini Kalra / Management Development Institute, India...................................................... 147 Şahin, Hande / Kırıkkale University, Turkey ..................................................................................... 116 Seker, Fahri / Bozok University, Turkey............................................................................................. 297 Sengupta, Jhumur / Management Development Institute, India .......................................................... 1 Tatoglu, Ferda Yerdelen / Istanbul University, Turkey ..................................................................... 329 Tezel, Zeynep / Kırıkkale University, Turkey ....................................................................................... 69 Topçu, Birol / Namık Kemal University, Turkey ................................................................................ 271 Tuğsal, Türker / Beykent University, Turkey ..................................................................................... 378 Yarbağ, Pelin Şahin / Beykent University, Turkey............................................................................. 378 Yenigün, Tekin / Namık Kemal University, Turkey............................................................................ 393 Yildirim, Filiz / Ankara University, Turkey ......................................................................................... 54 Yilmaz, Binhan Elif / Istanbul University, Turkey ............................................................................ 329 Yilmaz, Neslihan / Bogazici University, Turkey ................................................................................ 448 Zakaria, Nurul Farhana / Universiti Putra, Malaysia ..................................................................... 221

Table of Contents

Preface ................................................................................................................................................ xxii Acknowledgment ............................................................................................................................. xxxii Section 1 Behavioral Finance Theory Chapter 1 Theory of Behavioral Finance ................................................................................................................ 1 Jaya M. Prosad, Jaypee Business School, India Sujata Kapoor, Jaypee Business School, India Jhumur Sengupta, Management Development Institute, India Chapter 2 A General View of Poverty in Turkey as an Issue for Social Work in the Light of Behavioral Finance and Game Theory .................................................................................................................... 25 Seher Cesur-Kiliçaslan, İstanbul Arel University, Turkey Toprak Işik, Independent Scholar, Turkey Chapter 3 An Analysis of the Studies in Turkey into Consumer Behavior During Periods of Economic Crisis................................................................................................................................ 38 Aybala Demirci Aksoy, Gazi Üniversitesi, Turkey Chapter 4 The Relationship between Financial Planning for Retirement and Some Socio-Economic Variables: A Quantitative Study on Middle-Aged Women and Men.................................................... 54 Filiz Yildirim, Ankara University, Turkey Nuray Akpolat, Nevşehir Provincial National Education Directorate, Turkey Chapter 5 Financial Education for Children and Youth ........................................................................................ 69 Zeynep Tezel, Kırıkkale University, Turkey

Section 2 Psychological Concepts in Behavioral Finance Chapter 6 The Role of Psychological Factors in Behavioral Finance ................................................................... 94 Kijpokin Kasemsap, Suan Sunandha Rajabhat University, Thailand Chapter 7 Financial Distress and Health ............................................................................................................. 116 Hande Şahin, Kırıkkale University, Turkey Sibel Erkal, Hacettepe University, Turkey Chapter 8 Measuring the Poverty of Elderly People with Needs Analysis in Turkey ......................................... 127 Emine Özmete, Ankara University, Turkey Chapter 9 Investor Biases in Financial Decisions ............................................................................................... 147 Shalini Kalra Sahi, Management Development Institute, India Chapter 10 Social Exclusion and Poverty: EU 2020 Objectives and Turkey ........................................................ 170 Davuthan Günaydin, Namık Kemal University, Turkey Hakan Cavlak, Namık Kemal University, Turkey Neslihan Cavlak, Namık Kemal University, Turkey Section 3 Behavioral Approach to Financial Issues and Investment Chapter 11 Stochastic Processes for the Risk Management .................................................................................. 188 Gamze Özel, Hacettepe University, Turkey Chapter 12 The Efects of Situational and Dispositional Factors on the Change in Financial Risk Tolerance .... 201 Jorge Ruiz-Menjivar, University of Georgia, USA Wookjae Heo, University of Georgia, USA John E. Grable, University of Georgia, USA Chapter 13 Financial Well-Being among Young Employees in Malaysia............................................................. 221 Mohamad Fazli Sabri, Universiti Putra, Malaysia Nurul Farhana Zakaria, Universiti Putra, Malaysia

Chapter 14 Determinants of Financial Management Behaviors of Families ......................................................... 236 Gulay Gunay, Karabuk University, Turkey Ayfer Aydiner Boylu, Hacettepe University, Turkey Ahmet Oğuz, Karabuk University, Turkey Chapter 15 Is Technical Analysis Proitable even for an Amateur Investor? Evidence from the Greek Stock Market (2002-12) ................................................................................................................................ 255 Vasileiou Evangelos, University of the Aegean, Greece Section 4 Financial Industry Chapter 16 The Philippine Health Care Delivery System and Health Expenditure .............................................. 271 Abdulkadir Işık, Namık Kemal University, Turkey Abdulhamid Mauyag Gunda, Namık Kemal University, Turkey Birol Topçu, Namık Kemal University, Turkey Chapter 17 The Analysis of Health Care Expenses of Turkey between 1990-2012.............................................. 284 Hayriye Işik, Namık Kemal University, Turkey Yaşar Akdağ, Hakkari University, Turkey Chapter 18 Financial Development and Energy Consumption in Turkey: Empirical Evidence from Cointegration and Causality Tests ...................................................................................................... 297 Murat Çetin, Namık Kemal University, Turkey Eyyup Ecevit, Erciyes University, Turkey Fahri Seker, Bozok University, Turkey Davuthan Günaydin, Namık Kemal University, Turkey Chapter 19 Investor Sentiment and Stock Returns: Out of Sample Evidence ....................................................... 315 Serkan Yılmaz Kandır, Çukurova University, Turkey Veli Akel, Erciyes University, Turkey Murat Çetin, Namık Kemal University, Turkey Chapter 20 The Analysis of 2008 Global Crisis in Terms of the Sustainability of Public Debt Stock and Budget Deicits of PIIGS Countries Panel Data Analysis .................................................................. 329 Binhan Elif Yilmaz, Istanbul University, Turkey Ferda Yerdelen Tatoglu, Istanbul University, Turkey Sinan Ataer, Istanbul University, Turkey

Section 5 Behavioral Corporate Finance Chapter 21 State Financed Social Housing Model in South Africa Requires Capacity Building Injection.......... 338 Vuyisani Moss, National Department of Human Settlements, South Africa Hasan Dinçer, Istanbul Medipol University, Turkey Ümit Hacıoğlu, Istanbul Medipol University, Turkey Chapter 22 Post-Ofering Operating Performance of Reverse LBOs: An Update ................................................ 350 Sevilay Gümüş, Hacettepe University, Turkey Chapter 23 Emotional Intelligence Skills, Leadership, and Conlict in Efective Decision Making Process ....... 378 Burcu Hacioğlu, Society for the Study of Business and Finance, Turkey Ümit Hacıoğlu, Istanbul Medipol University, Turkey Hasan Dinçer, Istanbul Medipol University, Turkey Pelin Şahin Yarbağ, Beykent University, Turkey Türker Tuğsal, Beykent University, Turkey Chapter 24 Proactive Organizational Structure in Financial System .................................................................... 393 Korhan Arun, Namık Kemal University, Turkey Tekin Yenigün, Namık Kemal University, Turkey Chapter 25 Financial Implications of Relationship Marketing in Airline Business .............................................. 405 Hasan Dinçer, Istanbul Medipol University, Turkey Ümit Hacıoğlu, Istanbul Medipol University, Turkey Aydın Özdemir, Beykent University, Turkey Chapter 26 Overconident CEO Appointments: Determinants and Consequences on Competitors ..................... 448 Neslihan Yilmaz, Bogazici University, Turkey

Compilation of References ............................................................................................................... 463 About the Contributors .................................................................................................................... 512 Index ................................................................................................................................................... 522

Detailed Table of Contents

Preface ................................................................................................................................................ xxii Acknowledgment ............................................................................................................................. xxxii Section 1 Behavioral Finance Theory Chapter 1 Theory of Behavioral Finance ................................................................................................................ 1 Jaya M. Prosad, Jaypee Business School, India Sujata Kapoor, Jaypee Business School, India Jhumur Sengupta, Management Development Institute, India This chapter explores the evolution of modern behavioral inance theories from the traditional framework. It focuses on three main issues. First, it analyzes the importance of standard inance theories and the situations where they become insuicient i.e. market anomalies. Second, it signiies the role of behavioral inance in narrowing down the gaps between traditional inance theories and actual market conditions. This involves the substitution of standard inance theories with more realistic behavioral theories like the prospect theory (Kahneman & Tversky, 1979). In the end, it provides a synthesis of academic events that substantiate the presence of behavioral biases, their underlying psychology and their impact on inancial markets. This chapter also highlights the implications of behavior biases on inancial practitioners like market experts, portfolio managers and individual investors. The chapter concludes with providing the limitations and future scope of research in behavioral inance. Chapter 2 A General View of Poverty in Turkey as an Issue for Social Work in the Light of Behavioral Finance and Game Theory .................................................................................................................... 25 Seher Cesur-Kiliçaslan, İstanbul Arel University, Turkey Toprak Işik, Independent Scholar, Turkey In this chapter, the authors deine poverty in general terms before including statistics for a detailed, Turkey-speciic discussion. Once the authors elaborate on the causes of poverty, they introduce behavioural economics and game theory, the fundamental aim of the chapter being to examine how these two theories afect perceptions of poverty and the struggle against poverty. Another issue that enters into the scope of this chapter is to what extent the poor themselves are responsible for their own poverty. On this question,

game theory and behavioural economics can potentially be marshalled against the poor. However, we also argue that, by using a diferent approach, both theories can be interpreted in the poor’s favour. We examine the double-sided nature of these two theories in detail and stress how important it is in the study of poverty to consider the disadvantageous position in which the poor ind themselves. Chapter 3 An Analysis of the Studies in Turkey into Consumer Behavior During Periods of Economic Crisis .. 38 Aybala Demirci Aksoy, Gazi Üniversitesi, Turkey The fact that those countries going through tough times like economic crises can predict the change consumers experience so that they could take the necessary precautions brings them competitive advantage and helps them provide solutions accordingly. With this in mind, the present qualitative study paints a picture of a general overview of consumer behaviors in times of crises. The studies in Turkey into consumer behavior during periods of economic crises have shown that buying behavior of consumers change, that consumers resort to cheap good and services, and that they limit their spending on food the least. The Turkish consumers have started to cut back on their spending and postpone their needs in times of economic crisis. It could be stated that Turkish consumers now avoid hasty decisions when buying. Chapter 4 The Relationship between Financial Planning for Retirement and Some Socio-Economic Variables: A Quantitative Study on Middle-Aged Women and Men.................................................... 54 Filiz Yildirim, Ankara University, Turkey Nuray Akpolat, Nevşehir Provincial National Education Directorate, Turkey The purpose of this study, planned as a quantitative research, is to determine the relationship between planning retirement inancially in middle-age period and some socio-economic variables. This study is conducted through 287 volunteer participants, who live in Nevşehir, Turkey, aged 40-59, and were reached via the help of some key individuals. As the result of the study, statistically no signiicant diference has been found between the responses of women and men about planning the retirement inancially. However, it has been veriied that men’s inancial plans for retirement were higher in rates than that of women. On the other hand, it was also found that although neither women nor men feel ready for the retirement, it has been determined that for men the factor of being an owner of a house and for women the factor of saving up increases the inancial planning for the retirement. Chapter 5 Financial Education for Children and Youth ........................................................................................ 69 Zeynep Tezel, Kırıkkale University, Turkey Although inancial education consists of individuals of all ages, education of young people in the ield of inance is more important. The young generation faces more inancial risks and more complicated inancial products than their parents. Besides, young people are introduced to inancial services at very early ages owing to cell phones, bank accounts, credit cards. Therefore, it is important that individuals are educated in inance as early as possible.

Section 2 Psychological Concepts in Behavioral Finance Chapter 6 The Role of Psychological Factors in Behavioral Finance ................................................................... 94 Kijpokin Kasemsap, Suan Sunandha Rajabhat University, Thailand This chapter introduces the role of psychological factors in behavioral inance, thus explaining the theory of behavioral inance, the application of behavioral inance theory, the empirical achievement in behavioral inance, the utilization of psychological factors in behavioral inance regarding beliefs (i.e., overconidence, too much trading, optimism and wishful thinking, representativeness bias, conservatism bias, belief perseverance, anchoring, and availability bias) and preferences (i.e., prospect theory and ambiguity aversion). Behavioral inance is a comparatively new management ield that seeks to combine behavioral and cognitive psychological theory with conventional economics and inance to provide descriptions for why people make unreasonable inancial decisions. Psychological factors in behavioral inance hold out the expectation of a better understanding of inancial market behavior and scope for investors to make better investment decisions. Applying psychological factors in behavioral inance will tremendously enhance inancial performance and achieve strategic objectives in global inance. Chapter 7 Financial Distress and Health ............................................................................................................. 116 Hande Şahin, Kırıkkale University, Turkey Sibel Erkal, Hacettepe University, Turkey The fundamental socio-economic efects of economic crises on societies are decreasing income, unemployment and hence, negative progress of living standards, increasing income inequality and poverty. According to the Commission on Social Determinants of Health Report of World Health Organization, crises adversely afect many social determinants of health and thus threat health in many aspects. An important part of overall psychological well-being is satisfaction with various aspects of life. One of those domains is one’s inancial situation. Financial distress has been described as judgments about and responses to one’s inancial condition. Financial distress is a subjective phenomenon. Two individuals with the same levels of income and economic resources may have diferent levels of perceived inancial distress. Financial distress can result in or result from poor health, or both. The purpose of the study was to explore the relationships between inancial distress and health. Chapter 8 Measuring the Poverty of Elderly People with Needs Analysis in Turkey ......................................... 127 Emine Özmete, Ankara University, Turkey This study aimed to analyze the economic, social, and cultural needs of elderly people to determine the poverty thereof in Ankara (the capital city of Turkey).The economic, social, and cultural needs of individuals, which are among the indicators taken into consideration by United Nations Development Programme (UNDP) in measurement of human poverty index, were subject to research in measurement of poverty of elderly people. Face-to-face surveys were conducted with individuals over 65 years of age in

the study, with 2.522 surveys qualiied for evaluation. It was seen that the majority of elderly people were covered by social security. The elderly people reported their health to be good. They stated satisfaction regarding interindividual relationships with regard to social needs. However, it was concluded that the income of elderly people was not suicient, and that they could not suiciently aford electrical power and water invoices, medicine, food, and clothing expenses. Chapter 9 Investor Biases in Financial Decisions ............................................................................................... 147 Shalini Kalra Sahi, Management Development Institute, India Financial Decisions involve making choices between various investment alternatives, with the aim of increasing the individual’s net worth. The investor today is exposed to various investment options, but does not have the knowledge and capability of evaluating all the options and making a rational decision. Due to the limitation in the information processing capacities of the individuals, their beliefs and preferences, the investment decision-making process, gets biased. This chapter highlights ten such biases and throws light on how they impact investment behaviour, both positively and negatively. This understanding of investor psychology will generate insights that will beneit the inancial advisory relationship. Further for Individuals, recognizing how the biases impact their inancial decisions, can help create self-awareness and an understanding that would help them in better inancial management, in case these tendencies are leading them to make unsatisfactory investments. Chapter 10 Social Exclusion and Poverty: EU 2020 Objectives and Turkey ........................................................ 170 Davuthan Günaydin, Namık Kemal University, Turkey Hakan Cavlak, Namık Kemal University, Turkey Neslihan Cavlak, Namık Kemal University, Turkey In this chapter The EU’s 2020 Objectives concerning social exclusion and poverty and Turkey’s vision on social exclusion and poverty based on tenth development plan and Justice and Development Party’s 2023 vision is dealt. The EU has developed a growth strategy named “EU 2020” in 2010. The objective concerning social exclusion and poverty of this strategy is to rescue as much EU citizens as possible from social exclusion and poverty and decreasing the number of EU citizens who live under poverty line by 20%. Although Turkey is not oicially obliged to follow goals stated in EU 2020 objectives, it is integral for Turkey to pursue those principles in order to be harmony with the EU and reach her inal aim of being a member of the EU. Section 3 Behavioral Approach to Financial Issues and Investment Chapter 11 Stochastic Processes for the Risk Management .................................................................................. 188 Gamze Özel, Hacettepe University, Turkey The inancial markets use stochastic models to represent the seemingly random behavior of assets such as stocks, commodities, relative currency prices such as the price of one currency compared to that of another, such as the price of US Dollar compared to that of the Euro, and interest rates. These models are then used by quantitative analysts to value options on stock prices, bond prices, and on interest rates.

This chapter gives an overview of the stochastic models and methods used in inancial risk management. Given the random nature of future events on inancial markets, the ield of stochastic processes obviously plays an important role in quantitative risk management. Random walk, Brownian motion and geometric Brownian motion processes in risk management are explained. Simulations of these processes are provided with some software codes. Chapter 12 The Efects of Situational and Dispositional Factors on the Change in Financial Risk Tolerance .... 201 Jorge Ruiz-Menjivar, University of Georgia, USA Wookjae Heo, University of Georgia, USA John E. Grable, University of Georgia, USA Utilizing the lens of Heider’s (1958) attribution theory and Grable and Joo’s (2004) conceptual framework, this chapter studies the efect of situational and dispositional attributions on changes in inancial risk tolerance. Situational factors are assessed through changes in household situation and changes in macroeconomic factors. For dispositional factors, changes upon sensation seeking attitudes are explored. The data employed in this research come from the 1993, 1994, and 2006 National Longitudinal Survey of Youth (N = 5,449). Results from structural equation modeling indicate that changes in internal attributions have a signiicant and positive efect (coeicient = 0.12, p