Extant literature consistently documents that investors tilt their domestic equity portfolios towards regionally close stocks (local bias). We hypothesize that individual investors' local bias is not limited to the domestic sphere but instead also determines their international investment...

We analyze the effect of geographic proximity on individual investors' portfolio choice. Using a unique data set which covers the common stockholdings of private households at regional banks in Germany, we document strong and consistent overinvestment in geographically close companies. Our...

Homophily — individuals' affinity for others like them — is a powerful principle which governs whose opinions they attend to. Using nearly 2,400 advisory meetings, we find that homophily has a significant positive impact on the likelihood of following financial advice. The increased...

This paper proposes a methodological improvement to empirical studies of herd behavior based on investor transactions. By developing a simple model of trading behavior, we show that the traditionally used herding measure produces biased results. As this bias depends on characteristics of the...

Our study analyzes the market reaction to the complete content of a large sample of analysts' reports in the period from 2002 to 2004 for the German market. In particular, we explore whether the three summary measures in the reports, i.e., recommendation revisions, earnings forecast revisions,...

This paper evaluates the long-run performance of buy and sell recommendations issued by journalists at German Personal Finance Magazines for the first time. We find evidence for journalists providing significant investment value with their recommendations on the sell side since sell...

This study examines if journalists are affected by attention stimuli similar to that of individual investors. Applying logistic regression technique, we find that journalists focus on attention grabbing stocks when publishing their buy and sell recommendations. Thereby, journalists intensify the...

Der vorliegende Bericht ist einer der sechs Teilberichte zur „Klimawirkungs- und Risikoanalyse 2021 für Deutschland“, die darauf abzielt, eine wesentliche Grundlage für die Weiterentwicklung der Anpassung in Deutschland zu schaffen. Dafür wurden strukturiert nach Klimawirkungen und...

To obtain a tenured professorship, nontenured postdoctoral researchers have to build strong publication records. This study documents differences across disciplines (e.g., Accounting vs. Finance) regarding the publication records of 911 business administration professors in Germany at the time...