Degree of Involvement in Decisions and the Likelihood to Stop Investing Among Professionals
The likelihood of stopping an investment project differs after an experienced gain or loss. We investigate how the degree of involvement in prior decisions affects the subsequent decision to change an investment. To this end we conduct a lab-in-the-field experiment with professional participants from the finance department of a large infrastructure company. In line with the hypothesis and prior findings from student samples we find that lower involvement in the decision is associated with a higher likelihood of changing the investment project after a loss. However, this difference disappears with age, which we interpret as experience in the professional career
Year of publication: |
2022
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Authors: | Heinke, Steve ; Trutmann, Kevin ; Rudin, Celine |
Publisher: |
[S.l.] : SSRN |
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