# Chronotype, Risk and Time Preferences, and Financial Behaviour
## 1 Introduction  
Circadian rhythm is a time-based oscillation in physiological and biological functions that reflect a cycle of approximately 24 h. For humans and animals, the inner biological clock, which is situated in the suprachiasmatic nuclei of the hypothalamus, regulates this rhythm [1]. Sequentially, the hypothalamus secretes melatonin [2]. There is board individual heterogeneity in circadian rhythms, which can be identified by biological markers, such as sleep-wake patterns [3], body temperature [4, 5], and genes [6]. The sleep-wake cycle can be measured as circadian chronotypes, also known as morningness-eveningness, which are distributed normally on a continuum [7], allowing for the categorization of individuals into three groups: morning chronotype, neither type, and evening chronotype. Morning chronotype individuals, also known as \"larks\", are more likely to wake up in the early morning and to go asleep in the early evening as well. Evening chronotype individuals, also known as \"owls\", prefer to go to sleep late in the evening and to wake up later in the day [8]. For the last two decades, there has been increasing interest research into the effect of morningness-eveningness on multiple facets of life. Studies have reported links between the circadian chronotypes and work shifts [9], jet lag [10, 11], cognitive efficiency [12], cognitive style [13], personality traits [14], academic performance [1], mental disorders [15, 16], and life habits [17]. Based on these findings, we note that the circadian typologies influence psychological perspectives and behaviour, but mainly in the aspects of work, education, and health. Very few researchers have examined the association between morningness-eveningness and financial behaviour. The effect of the circadian rhythm on financial well-being is important because financial well-being contributes positively to general life satisfaction [18]. The first goal of this study is to investigate whether the circadian typology influence financial behaviour, especially delinquent credit card payments and stock market participation. First, revolving credit borrowers who do not entirely pay off their loans after the monthly deadline or miss payments have a larger amount of credit debt, as compared to those who pay off such loan on time. From a financial perspective, delinquent credit card payments are not of benefit to long-term financial health because adopting the habit of making loan payment late leads to accumulated outstanding debt [19]. Such consumers are more likely to have incomplete credit card debts, which in the short run leads to higher interest rates, financial penalties, and higher outstanding balances [20]. Investigating the effect of morningness-eveningness on delinquent credit card payments could provide practical implications, such as interventions that prevent this behaviour or that help to break the habit of not paying back loans according to monthly time schedule. Second, participation in the stock market is essentially a financial decision [21], and it might be financially harmful if one refuses to take part in the stock market over the long term. The reason is that equity premium can provide long-term benefits for personal savings, which in turn influence personal financial well-being. The second goal of the present study is to investigate the possible mechanisms through which morningness-eveningness influences delinquent credit card payments and stock market participation. We draw on the theories of risk preference and time preference, in order to provide a richer explanation regarding the likely channels. The first reason is that morning-types are positively associated with future time preference [22; 23], while [PERSON] and [PERSON] [24] reported that present-biased individuals tend to have higher revolving credit balances as compared with future-oriented individuals. Hence, the time perspective appears to be a possible channel between the circadian typology and incomplete monthly credit debt payments.