# Chronotype, Risk and Time Preferences, and Financial Behaviour
## 4 Results
### The Mediating Role of Financial Risk Preference (H6)  
First, an OLS regression is used to investigate the relationship between morningness and financial risk preference. Second, a logistic regression is conducted to examine the relationship between financial risk preference and stock market participation. Consequently, we are able to test whether financial risk preference mediates the link between morningness and stock market participation (Hypothesis 6). Table 8 reports the results of this mediation model. The results indicate that the morning chronotype is positively associated with financial risk preference (path a: coefficient is 0.745, SE = 0.277, t = 2.688). This finding contradicts that of [PERSON] and [PERSON] [25]. In addition, financial risk tolerance is positively associated with stock market participation (path b: coefficient is 0.293, SE = 0.059, z = 4.934). Since the a-path and b-path are significant, the results indicate that there is a mediation effect. To further test the significance of this mediation effect (indirect effect a \(\times\) b), we use the bootstrapping method with bias-corrected confidence estimates [132]. Next, the 95% confidence interval of the indirect effect is taken with 5000 bootstraps resamples [132]. If the confidence interval of the estimator does not contain 0, it shows that the indirect effect is significantly different from zero. The results of the bootstrap test showed that financial risk preference mediates the link between morningness and stock market participation (indirect effect = a \(\times\) b = 0.219, SE = 0.095, 95% CI = from 0.067 to 0.435). Moreover, when adding financial risk preference, the relationship between the morning chronotype and stock market participation turns becomes non-significant (path c\({}^{\prime}\): coefficient is 0.543, SE = 0.351, z = 1.551). This result means that financial risk preference is a full mediator. To summarize, the results are in support of Hypothesis 6. In other words, financial risk preference is one channel through which morningness positively influences the likelihood of stock market participation. \begin{table}
\begin{tabular}{l c c c c} \hline \hline
**Dependent Variables:** & \multicolumn{3}{c}{**Logistic Regression**} \\
**Stock Market Participation** & \multicolumn{3}{c}{**Logistic Regression**} \\ \hline
**Variables** & **Average Marginal Effect** & **SE** & **z-Statistic** & **_p-Value_** \\ \hline _Main variables_ & & & & \\ Morningness & 0.105 * & 0.063 & 1.66 & 0.098 \\ _Control variables_ & & & & \\ Age & 0.011 & 0.044 & 0.24 & 0.812 \\ Male & 0.111 ** & 0.045 & 2.49 & 0.013 \\ Married & 0.088 * & 0.047 & 1.83 & 0.067 \\ Education & 0.121 *** & 0.037 & 3.24 & 0.001 \\ Monthly income & 0.018 & 0.021 & 0.86 & 0.389 \\ Financial risk preference & 0.056 ** & 0.011 & 5.24 & 0.001 \\ Log pseudolikelihood & \(-\)258.340 & & & \\ Pseudo R2 & 0.117 & & & \\ \hline Number of observation & & & & \\ \hline \hline \end{tabular} Note: The dependent variable is stock market participation. This table reports the average marginal effect based on logistic regression examining the effect of morningness on the stock market participation. The sample is China residents who have been working for 3 to 8 years, randomly sampled with the online survey. *, **, and *** indicate significance at 10% level (two-sided), 5% level, and 1% level, respectively.  
\end{table} 
Table 7: The effect of morningness on stock market participation based on logistic regression. The Moderating Role of Income on the Indirect Effect of Morningness on Stock Market Participation (H7 and H8)  
Table 9 summarizes the statistical results of the moderation model that investigates the moderating effect of monthly income on the relationship between morningness and financial risk preference. The dependent variable is financial risk preference. The independent variable is morningness and the moderator is monthly income. We grand-mean-center the moderator (Monthly income) and the independent variable (Morningness) according to the approach proposed by [PERSON] et al.