The role of state of power in the relationship between Locus of Control and financial risk-taking ...

Previous research has demonstrated that a sense of power plays a crucial role in shaping financial risk-taking behavior in both investment and gambling contexts. However, financial risk-taking is also influenced by Locus of Control (LOC), which reflects the extent to which individuals attribute outcomes to their own actions (internal LOC) versus external forces (external LOC). Studies suggest that individuals with a strong internal LOC are more likely to engage in financial risk-taking, as they perceive greater control over outcomes. Given that a sense of power may be positively associated with an internal LOC, its role in financial decision-making warrants further investigation. Therefore, this study examines whether an experimentally induced state of power moderates the relationship between LOC and financial risk-taking in both investment and gambling domains. ...