| 1. |
- Kirchler, Michael, 1977, et al.
(författare)
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Delegated investment decisions and rankings
- 2020
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Ingår i: Journal of Banking & Finance. - : Elsevier BV. - 0378-4266. ; 120
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Tidskriftsartikel (refereegranskat)abstract
- Two aspects of social context are central to the finance industry. First, financial professionals usually make investment decisions on behalf of third parties. Second, social competition, in the form of performance rankings, is pervasive. Therefore, we investigate professionals' risk taking behavior under social competition when investing for others. We run online and lab-in-the-field experiments with 805 financial professionals and show that professionals increase their risk taking for others when they lag behind. Additional survey evidence from 1349 respondents reveals that professionals' preferences for high rankings are significantly stronger than those of the general population. (C) 2020 The Authors. Published by Elsevier B.V.
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| 2. |
- Kirchler, Michael, 1977, et al.
(författare)
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Rankings and Risk-Taking in the Finance Industry
- 2018
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Ingår i: Journal of Finance. - : Wiley. - 0022-1082. ; 73:5, s. 2271-2302
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Tidskriftsartikel (refereegranskat)abstract
- Rankings are omnipresent in the finance industry, yet the literature is silent on how they impact financial professionals' behavior. Using lab-in-the-field experiments with 657 professionals and lab experiments with 432 students, we investigate how rank incentives affect investment decisions. We find that both rank and tournament incentives increase risk-taking among underperforming professionals, while only tournament incentives affect students. This rank effect is robust to the experimental frame (investment frame vs. abstract frame), to payoff consequences (own return vs. family return), to social identity priming (private identity vs. professional identity), and to professionals' gender (no gender differences among professionals).
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| 3. |
- Razen, M., et al.
(författare)
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Domain-specific risk-taking among finance professionals
- 2020
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Ingår i: Journal of Behavioral and Experimental Finance. - : Elsevier BV. - 2214-6350. ; 27
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Tidskriftsartikel (refereegranskat)abstract
- Risk-assessment and risk-taking in various forms are among the most important tasks financial professionals face in their daily work. A large body of experimental studies has shown a substantial effect of the decision domain (gain vs loss domain) on risk-taking, predominantly among students. In a series of experiments set in different contextual frameworks, we investigate whether this domain effect is also present among experienced employees in the finance industry and compare their decisions with people from the general population. Our results show that employees in the finance industry are equally prone to the domain effect in risk-taking than the general population. Interestingly, for domain-specific risk-taking in a finance context, we find that professionals are even more reluctant to sell loser stocks than non-professionals. © 2020 The Authors
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| 4. |
- Schwaiger, R., et al.
(författare)
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Determinants of investor expectations and satisfaction. A study with financial professionals
- 2020
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Ingår i: Journal of Economic Dynamics and Control. - : Elsevier BV. - 0165-1889. ; 110
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Tidskriftsartikel (refereegranskat)abstract
- We investigate determinants of price expectations and satisfaction levels of financial professionals and students. In experiments with 150 professionals and 576 students, we systematically vary price paths according to the final return (positive or negative) and the way in which the final return is achieved (upswing followed by downswing or vice versa). Professionals show the most optimistic price expectations and are most satisfied if assets fall in price first and then recover. In addition, professionals’ price expectations are highest after positive returns. Among students, qualitatively similar patterns emerge, but professionals’ price expectations are less prone to framing effects. © 2019 The Author(s)
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