Title: Financial naivety, excessive gaming, and compulsive buying influence cryptocurrency continuance intention: the mediating role of overconfidence and risk tolerance

Authors: Elisa Tjondro; Retnaningtyas Widuri; Josua Tarigan; Saarce Elsye Hatane

Addresses: Accounting Department, School of Business and Management, Petra Christian University, Jalan Siwalankerto 121-131, Wonocolo, Surabaya, 60236, Indonesia ' Accounting Department, School of Business and Management, Petra Christian University, Jalan Siwalankerto 121-131, Wonocolo, Surabaya, 60236, Indonesia ' Accounting Department, School of Business and Management, Petra Christian University, Jalan Siwalankerto 121-131, Wonocolo, Surabaya, 60236, Indonesia ' Accounting Department, School of Business and Management, Petra Christian University, Jalan Siwalankerto 121-131, Wonocolo, Surabaya, 60236, Indonesia

Abstract: This study seeks to investigate the investment persistence among individuals who have maintained cryptocurrency holdings in the previous year. Financial naivety, online compulsive buying, and excessive gaming behaviours influence continuance intention, either through overconfidence or risk tolerance. The sample comprised 1,097 participants selected from the five provinces of Indonesia's most significant internet user bases. Structural equation modeling is utilised in this study. This study demonstrates that excessive gaming behaviour and financial naivety are associated with continuance intention, either directly or indirectly, via overconfidence or risk tolerance. Investors should be cautious regarding their financial naivety and excessive gaming behaviour, as these elements increase the tendency to be overly optimistic. The findings are consistent with the Dunning-Kruger effect. Conversely, this study fail to substantiate the correlation between compulsive buying and continuance intention. The implication is to provide investors with valuable insights into the psychological effects of specific behaviors on investment decisions.

Keywords: CCI; cryptocurrency continuance intention; financial naivety; compulsive buying; excessive gaming; overconfidence; risk tolerance; Dunning-Kruger effect.

DOI: 10.1504/IJTGM.2024.143739

International Journal of Trade and Global Markets, 2024 Vol.20 No.1/2, pp.97 - 120

Received: 10 Jan 2024
Accepted: 04 Jun 2024
Published online: 06 Jan 2025 *

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