scholarly journals Market shocks and professionals' investment behavior – Evidence from the COVID-19 crash

2020 ◽  
Author(s):  
Christoph Huber ◽  
Juergen Huber ◽  
Michael Kirchler
Keyword(s):  
Stock Market ◽  
Risk Aversion ◽  
Risk Taking ◽  
Investment Behavior ◽  
Controlled Experiments ◽  
Price Expectations ◽  
Market Crashes ◽  
Changes In Risk ◽  
Risk Taking Behavior ◽  
Market Shocks

We investigate how the experience of stock market shocks, such as the COVID-19 crash, influences risk-taking behavior. To isolate changes in risk taking from other factors during stock market crashes, we ran controlled experiments with finance professionals in December 2019 and March 2020. We observe that their investments in the experiment were 12 percent lower in March 2020 than in December 2019, although their price expectations had not changed, and although they considered the experimental asset less risky during the crash than before. Thus, lower investments are driven by higher risk aversion, not by changes in beliefs.

Predicting Stock Market Performance

2020 ◽  
pp. 1-10
Author(s):  
Thomas Plieger ◽  
Thomas Grünhage ◽  
Éilish Duke ◽  
Martin Reuter
Keyword(s):  
Stock Market ◽  
Risk Taking ◽  
Life Stress ◽  
Price Volatility ◽  
Individual Characteristics ◽  
Self Report ◽  
Financial Behavior ◽  
Market Simulation ◽  
Stock Market Performance ◽  
Risk Taking Behavior

Abstract. Gender and personality traits influence risk proneness in the context of financial decisions. However, most studies on this topic have relied on either self-report data or on artificial measures of financial risk-taking behavior. Our study aimed to identify relevant trading behaviors and personal characteristics related to trading success. N = 108 Caucasians took part in a three-week stock market simulation paradigm, in which they traded shares of eight fictional companies that differed in issue price, volatility, and outcome. Participants also completed questionnaires measuring personality, risk-taking behavior, and life stress. Our model showed that being male and scoring high on self-directedness led to more risky financial behavior, which in turn positively predicted success in the stock market simulation. The total model explained 39% of the variance in trading success, indicating a role for other factors in influencing trading behavior. Future studies should try to enrich our model to get a more accurate impression of the associations between individual characteristics and financially successful behavior in context of stock trading.

Equity-Based Incentives, Risk Aversion, and Merger-Related Risk-Taking Behavior

2014 ◽  
Vol 49 (1) ◽  
pp. 117-148 ◽  
Author(s):  
Bradley W. Benson ◽  
Jung Chul Park ◽  
Wallace N. Davidson
Keyword(s):  
Risk Aversion ◽  
Risk Taking ◽  
Related Risk ◽  
Risk Taking Behavior

P3-133: Altered risk-aversion and risk-taking behavior in Alzheimer's disease: A preliminary study

2010 ◽  
Vol 6 ◽  
pp. S489-S489
Author(s):  
Ju-Won Ha ◽  
Eun-Jin Kim ◽  
Yeo-Jin Kang ◽  
Se-Won Lim ◽  
Kang-Seob Oh
Keyword(s):  
Alzheimer’S Disease ◽  
Alzheimer's Disease ◽  
Risk Aversion ◽  
Risk Taking ◽  
Preliminary Study ◽  
Risk Taking Behavior

Risk-Taking Behavior with Limited Liability and Risk Aversion

1997 ◽  
Vol 64 (2) ◽  
pp. 347 ◽  
Author(s):  
Christian Gollier ◽  
Pierre-Francois Koehl ◽  
Jean-Charles Rochet
Keyword(s):  
Risk Aversion ◽  
Risk Taking ◽  
Limited Liability ◽  
Risk Taking Behavior

scholarly journals Are the Effects of Age Still Relevant in Predicting Malaysian Investors’ Risk-Taking Behavior in Stock Market?

2018 ◽  
Vol 7 (3.21) ◽  
pp. 238
Author(s):  
Audrey Lim Li Chin ◽  
Arfan Shahzad
Keyword(s):  
Stock Market ◽  
Risk Taking ◽  
Structural Equation ◽  
Age Groups ◽  
Kuala Lumpur ◽  
Self Confidence ◽  
Significant Difference ◽  
Familiarity Bias ◽  
Risk Taking Behavior ◽  
Using Data

The role of age in moderating investor’s self-confidence bias, herding, conservatism bias, familiarity bias, and regret in risk-taking behavior is explored using data collected from retail investors in Melaka, Selangor, and Wilayah Persekutuan (W.P.) Kuala Lumpur. As indicated in data analysis by Partial Least Squares Structural Equation Modelling (PLS-SEM), age plays an important moderating role in herding, regret, and self-confidence bias in investor’s risk-taking behavior. While younger investors who tend to herd are more risk averse and feel more regret in risk-taking than the older group, older investors seem to exhibit a higher level of self-confidence bias than younger investors. However, the risk- taking distribution between the age groups indicates no significant difference. Thus, the readiness in greater levels of risk acceptance depends on the individuals’ preference towards herding, regret, and self-confidence bias. Furthermore, this study also address contradictions in the existing literatures that fuels stereotyping and discrimination based on age. Therefore, age stereotype should be avoided when formulating microstructure strategies to raise the investor’s participation in the stock market.  

Reduced maternal behavior caused by gestational stress is predictive of life span changes in risk-taking behavior and gene expression due to altering of the stress/anti-stress balance

2018 ◽  
Vol 66 ◽  
pp. 138-149 ◽  
Author(s):  
Eleonora Gatta ◽  
Jérôme Mairesse ◽  
Lucie Deruyter ◽  
Jordan Marrocco ◽  
Gilles Van Camp ◽  
...  
Keyword(s):  
Gene Expression ◽  
Life Span ◽  
Risk Taking ◽  
Maternal Behavior ◽  
Changes In Risk ◽  
Risk Taking Behavior ◽  
Gestational Stress

scholarly journals Altered Risk-Taking Behavior in Early-Stage Bipolar Disorder With a History of Psychosis

2021 ◽  
Vol 12 ◽  
Author(s):  
Sandra Chi Yiu Wong ◽  
Mary Chung Mun Ng ◽  
Joe Kwun Nam Chan ◽  
Martha Sin Ki Luk ◽  
Simon Sai Yu Lui ◽  
...  
Keyword(s):  
Bipolar Disorder ◽  
Risk Aversion ◽  
Risk Taking ◽  
Cognitive Functions ◽  
Early Stage ◽  
First Episode ◽  
Increased Risk ◽  
Significant Difference ◽  
History Of ◽  
Risk Taking Behavior

Altered risk-taking propensity is an important determinant of functional impairment in bipolar disorder. However, prior studies primarily assessed patients with chronic illness, and risk-taking has not been evaluated in the early illness course. This study investigated risk-taking behavior in 39 euthymic early-stage bipolar disorder patients aged 16–40 years who were treated within 3 years from their first-episode mania with psychotic features and 36 demographically-matched healthy controls using the Balloon Analog Risk Task (BART), a well-validated risk-taking performance-based paradigm requiring participants to make responses for cumulative gain at increasing risk of loss. Relationships of risk-taking indices with symptoms, self-reported impulsivity, cognitive functions, and treatment characteristics were also assessed. Our results showed that patients exhibited significantly lower adjusted scores (i.e., average balloon pumps in unexploded trials) (p = 0.001), lower explosion rate (p = 0.007) and lower cumulative scores (p = 0.003) than controls on BART, indicating their suboptimal risk-taking performance with increased propensity for risk aversion. Risk-taking indices were not correlated with any symptom dimensions, self-reported impulsivity, cognitive functions or antipsychotic dose. No significant difference was observed between patients with and without antipsychotic medications on self-reported impulsivity or any of the BART performance indices. This is the first study to examine risk-taking behavior in early-stage bipolar disorder with history of psychosis and indicates that patients displayed altered risk-taking with increased risk aversion compared with controls. Further research is needed to clarify longitudinal trajectory of risk-taking propensity and its relationships with psychosis and functional outcome in the early stage of bipolar disorder.

USING REPERTORY GRIDS TO MEASURE CHANGES IN RISK-TAKING BEHAVIOR

2003 ◽  
Vol 04 (01) ◽  
pp. 101-114 ◽  
Author(s):  
GUILLERMO ARANDA ◽  
EDWARD FINCH
Keyword(s):  
Risk Taking ◽  
Repertory Grids ◽  
Changes In Risk ◽  
Risk Taking Behavior
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