Accepting a certain degree of investment loss risk is essential for long-term portfolio management. However, overconfidence bias within financial literacy can prompt excessively risky behavior and amplify susceptibility to other cognitive biases. These tendencies can undermine investment loss tolerance beyond the baseline level shaped by sociodemographic, economic, psychological, and cultural factors. This study empirically examines the association between overconfidence and investment loss tolerance, which is measured by the point at which respondents indicate they would sell their investments in a hypothetical loss scenario. Using a large-scale dataset of 161,765 active investors from one of Japan’s largest online securities firms, we conduct ordered probit and ordered logit regression analyses, controlling for a range of sociodemographic, economic, and psychological variables. Our findings reveal that overconfidence is statistically significantly and negatively associated with investment loss tolerance, indicating that overconfident investors are more prone to prematurely liquidating assets during market downturns. This behavior reflects an impulse to avoid even modest losses. The findings suggest several possible practical strategies to mitigate the detrimental effects of overconfidence on long-term investment behavior.

Asset accumulation in later life is a pressing issue in Japan due to the growing gap between life expectancy (87.14 years for women, 81.09 years for men in 2023) and the retirement age (65 or less). This gap heightens financial insecurity, emphasizing the need to meet asset goals by 65. Hyperbolic discounting, driven by present-biased preferences, often hinders this process, but empirical evidence for those aged 65 and older remains limited. Moreover, prior research has overlooked the varying impacts of hyperbolic discounting across different wealth levels. This study addresses these gaps by analyzing data from 6709 active Japanese investors aged over 65 (2023 wave) using probit regression. Wealth thresholds are categorized into four levels: JPY 20 million, JPY 30 million, JPY 50 million, and JPY 100 million. The results show that hyperbolic discounting significantly impairs asset accumulation at the JPY 100 million level but not at lower thresholds. This effect likely reflects the complex nature of hyperbolic discounting, which primarily affects long-term savings and investments. The findings underscore the importance of addressing hyperbolic discounting in later-life financial planning. Recommendations include implementing automatic savings plans, enhancing financial literacy, and incorporating behavioral insights into planning tools to support better asset accumulation outcomes.

Similar to her neighboring country, Japan, China faces significant difficulties in providing long-term care to the elderly. Female household members who traditionally provided necessary caregiving are no longer available as much as in the past due to the demographic and socioeconomic changes over the past few decades. Against this backdrop, we investigated how socioeconomic factors affect the perception of family caregiving norms in China, using an international comparative household dataset that allowed us to compare China with Japan, the latter being extensively investigated. We used ordered probit regression to estimate the model equation. Our results show that rural residency, household assets, and government dependency are positively associated with the perception of care. A notable difference from the Japanese results is that rural residents have a rather positive perception of family caregiving norms. Furthermore, urban–rural subsample analyses revealed that women in rural areas perceive caregiving negatively.

Investment loss tolerance refers to an investor’s willingness to hold financial instruments after experiencing value declines and is considered essential to long-term investment success. Financial literacy, comprising financial knowledge, attitude, and behavior, has been widely identified as a key factor in promoting rational financial decisions. A recent study by Homma et al. suggests that the three components can help prevent panic selling during market crises, such as the COVID-19 pandemic. However, that study relies on binary behavioral indicators within crisis-specific contexts, limiting the generalizability of their findings. To address these gaps, the present study quantitatively measures investment loss tolerance using a generalized hypothetical loss scenario and investigates the associations of financial literacy components. Using a large-scale dataset of 161,223 active investors from one of Japan’s largest online securities firms, we conducted ordered probit and probit regression analyses while controlling for demographic, socioeconomic, and psychological factors. The results reveal that financial knowledge, attitude, and behavior all have statistically significant positive effects on investment loss tolerance. These findings indicate that financial literacy enhances investors’ capacity to withstand losses and discourages premature asset liquidation, even outside crisis-specific contexts. The evidence supports policies aimed at improving financial literacy to foster more resilient investor behavior and promote long-term financial well-being.

Obesity is a major global health concern related to chronic diseases and rising healthcare costs. While previous studies focused on diet habits, environmental issues, and physical activity, financial literacy remains an overlooked factor in weight management. This study examined the relationship between financial literacy and the body mass index (BMI), using financial literacy as a proxy for rational health decision-making. A quantitative approach was employed, where linear regression analyzed the BMI as a continuous variable and a probit regression assessed overweight, normal weight, and underweight categories. A nationwide survey, the Preference Parameter Study, conducted by Osaka University, Japan, in the United States, provided the data for this study. The results indicate a significant negative association between financial literacy and the BMI, with higher financial literacy linked to a lower BMI and a greater likelihood of maintaining a normal weight. The key control variables, including impatience, gender, education, income, and smoking, also significantly affected the BMI. These findings reflect a strong correlation between financial literacy and the weight status; however, due to data limitations, causal inferences could not be made. We acknowledge the potential endogeneity and the cross-sectional nature of the data as limitations. Thus, while our results suggest a potential role for financial literacy in promoting rational health behavior, the policy implications should be interpreted with caution. Future research should explore targeted interventions across various demographic groups to maximize the impact.