The Impact of Sleep Quality on the Return of Individual Investors in the Vietnamese Stock Market

Abstract

This study analyses the impact of sleep quality on the return rate of individual investors on the Vietnamese stock market based on data from 405 individual investors. Sleep quality is assessed through factors such as sleep time, duration, number of awakenings during the night, and napping habits. The results show that sleep quality does not clearly affect the return rate of investors in general and active investors (investors with high trading frequency) in particular. However, we also find evidence that good sleep quality will positively affect the returns of passive investors (investors with low trading frequency). Our research results are guaranteed to be robust using many different models, including OLS, PCA, PLSR and GMM. We recommend that passive investors improve their sleep quality to maintain positive emotions and good cognition, which will help increase their returns.