Determinants of investor expectations and satisfaction. A study with financial professionals

Rene Schwaiger, Michael Kirchler, Florian Lindner, Utz Weitzel

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We investigate determinants of price expectations and satisfaction levels of financial professionals and students. In experiments with 150 professionals and 576 students, we systematically vary price paths according to the final return (positive or negative) and the way in which the final return is achieved (upswing followed by downswing or vice versa). Professionals show the most optimistic price expectations and are most satisfied if assets fall in price first and then recover. In addition, professionals’ price expectations are highest after positive returns. Among students, qualitatively similar patterns emerge, but professionals’ price expectations are less prone to framing effects.

Original languageEnglish
JournalJournal of Economic Dynamics and Control
DOIs
Publication statusE-pub ahead of print - Apr 2019

Fingerprint

Determinant
Students
Investors
Experiments
Vary
Price expectations
Path
Experiment

Keywords

  • Experimental finance
  • Financial professionals
  • Investor behavior
  • Investor satisfaction
  • Price expectations

Cite this

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abstract = "We investigate determinants of price expectations and satisfaction levels of financial professionals and students. In experiments with 150 professionals and 576 students, we systematically vary price paths according to the final return (positive or negative) and the way in which the final return is achieved (upswing followed by downswing or vice versa). Professionals show the most optimistic price expectations and are most satisfied if assets fall in price first and then recover. In addition, professionals’ price expectations are highest after positive returns. Among students, qualitatively similar patterns emerge, but professionals’ price expectations are less prone to framing effects.",
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Determinants of investor expectations and satisfaction. A study with financial professionals. / Schwaiger, Rene; Kirchler, Michael; Lindner, Florian; Weitzel, Utz.

In: Journal of Economic Dynamics and Control, 04.2019.

Research output: Contribution to JournalArticleAcademicpeer-review

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AB - We investigate determinants of price expectations and satisfaction levels of financial professionals and students. In experiments with 150 professionals and 576 students, we systematically vary price paths according to the final return (positive or negative) and the way in which the final return is achieved (upswing followed by downswing or vice versa). Professionals show the most optimistic price expectations and are most satisfied if assets fall in price first and then recover. In addition, professionals’ price expectations are highest after positive returns. Among students, qualitatively similar patterns emerge, but professionals’ price expectations are less prone to framing effects.

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