Showing 1 - 10 of 94
We present evidence from a repeated survey on risky asset holdings carried out on a representative sample of the German population six times between April and June 2020. Given the size of the Covid-19 shock, we find little evidence of portfolio rebalancing in April 2020. In May, however,...
Persistent link: https://www.econbiz.de/10012596661
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The low degree of stock market participation (SMP) is one of the big puzzles in finance. Numerous determinants have been proposed. We put these determinants into a structure that is derived from a standard static portfolio model. Then we discuss arguments put forward regarding specific SMP...
Persistent link: https://www.econbiz.de/10014528274
This paper finds that fund managers do not expect mean reverting returns, as suggested by theory and empirical evidence, but mean averting returns. The degree of mean aversion is positively related to preferences for non-fundamental information and loss aversion.
Persistent link: https://www.econbiz.de/10002485540
Entrepreneurs tend to be risk tolerant but is more risk tolerance always better? In a sample of about 2,100 small businesses, we find an inverted U-shaped relation between risk tolerance and profitability. This relationship holds in a simple bilateral regression and also when we control for a...
Persistent link: https://www.econbiz.de/10014468858
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. Higher risk taking may be explained by a higher degree of overconfidence, less herding behavior, or a lower degree of risk … overconfidence is mixed. We will argue that this mixed evidence may be likely due to the heterogeneity in the employed definitions of … risk taking and overconfidence. …
Persistent link: https://www.econbiz.de/10010261673
There are robust gender differences in the domains of risk taking, overconfidence and competition behavior. However, as … competition in the tournament scenario. The expected lower degree of overconfidence by women is yet so small that it becomes …
Persistent link: https://www.econbiz.de/10010264941
This paper examines financial professionals' overconfidence in their forecasting performance. We are the first to … show overconfidence on average. In analyzing this, we find an easing relation to experience. Job characteristics are also … related to less overconfidence, such as being a fund manager and using fundamental analysis. The same effect is found for the …
Persistent link: https://www.econbiz.de/10010270051
This paper examines the puzzlingly high unexploited momentum returns from a new perspective. We analyze characteristics of momentum traders in a sample of 692 fund managers. We find that momentum traders are 'defined' by their short-term horizon, by a behavioural view on the market and by a...
Persistent link: https://www.econbiz.de/10010270394