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Locus of Control and Consistent Investment Choices
Pinger, Pia R. - 2018
We document that an internal locus of control can be hindering in financial market situations, where short-term outcomes are determined by chance. The reason is that internally controlled individuals may tend to (over-)react to random outcomes. Our evidence is based on an experiment in which...
Persistent link: https://www.econbiz.de/10012918221
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Household Portfolio Choice, Reference Dependence, and the Marriage Market
Li, Wenchao - 2017
This paper bridges the financial market and the marriage market using a reference-dependent mechanism. Male-biased sex ratios induce families with sons to hold more risky assets, since competitive marital payment in a tight market raises the reference level of marriage expenditure for such...
Persistent link: https://www.econbiz.de/10012963843
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Household Finances and the 'Big Five' Personality Traits
Brown, Sarah - 2011
We explore the relationship between household finances and personality traits from an empirical perspective. Specifically, using individual level data drawn from the British Household Panel Survey, we analyse the influence of personality traits on financial decision-making at the individual...
Persistent link: https://www.econbiz.de/10013117198
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Trust and the Choice between Housing and Financial Assets : Evidence from Spanish Households
El-Attar, Mayssun - 2010
Trusting behavior has been shown to affect households' portfolio choice between risky and risk-free financial assets. We extend the analysis of the effect of trust on portfolio choice to include the dominant component of households' portfolios, real estate. In a simple model, we show how the...
Persistent link: https://www.econbiz.de/10013136779
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Locus of Control and Savings
Cobb-Clark, Deborah A. - 2013
This paper analyzes the relationship between individuals' locus of control and their savings behavior, i.e. wealth accumulation, savings rates, and portfolio choices. Locus of control is a psychological concept that captures individuals' beliefs about the controllability of life events and is a...
Persistent link: https://www.econbiz.de/10013071285
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Explaining the Favorite-Longshot Bias : Is it Risk-Love or Misperceptions?
Snowberg, Erik C. - 2011
The favorite-longshot bias describes the longstanding empirical regularity that betting odds provide biased estimates … misperceptions of probability drive the favorite-longshot bias, as suggested by Prospect Theory …
Persistent link: https://www.econbiz.de/10013133624
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Biased Beliefs and Imperfect Information
Proto, Eugenio - 2015
test two main hypotheses: (i) whether for items not perfectly observable, individuals suffer of some type of bias in these … beliefs; (ii) whether this bias would disappear for weight and height, when the information is perfectly available. We find a … powerful and ubiquitous bias in perceptions that is "self-centered" in the sense that those at extremes tend to perceive …
Persistent link: https://www.econbiz.de/10013026876
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Overconfidence is a Social Signaling Bias
Burks, Stephen V. - 2010
the desire to send positive signals to others about one's own skill; this suggests a either a bias in judgment, strategic …
Persistent link: https://www.econbiz.de/10013146457
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Skewness Expectations and Portfolio Choice
Drerup, Tilman H.; Wibral, Matthias; Zimpelmann, Christian - 2022
Many models of investor behavior predict that investors prefer assets that they believe to have positively skewed return distributions. We provide a direct test of this prediction in a representative sample of the Dutch population. Using individual-level data on return expectations for a broad...
Persistent link: https://www.econbiz.de/10013406448
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The Coming Wave : Where Do Emerging Market Investors Put Their Money?
Karolyi, George Andrew - 2015
We examine how emerging market (EM) investors allocate their stock portfolios internationally. Using both country-level and institution-level data, we find that the coming wave of EM investors systematically over- and under-weight their holdings in some target countries. These abnormal foreign...
Persistent link: https://www.econbiz.de/10013013596