Perception in Finance

Overview

Duration: 08/2016-onging

Agenda

Return and risk are two fundamental aspects in financial decision-making, yet while researchers in various fields have studied interactions between preferences and investment behavior, the link between the two, namely perceptions of risk and return, have received far less attention.

This project remedies this gap in the literature by studying the role of perception in finance, with a particular focus on risk perception by retail investors. It is the aim of the project team to provide contributions which have the potential to improve financial decision-making by retail investors and thus improve people's long-term finances.

Publications

Holzmeister, F., Huber, C., Palan, S., 2020. , Handbook of Experimental Finance.
Huber, J., Palan, S., Zeisberger, S., 2019. Does Investor Risk Perception Drive Asset Prices in Markets? Experimental Evidence., Journal of Banking & Finance 108.

Project updates

2020-10-20 | "A Critical Perspective on the Conceptualization of Risk in Behavioral and Experimental Finance" published in the Handbook of Experimental Finance. (Working paper version)
2019-12-31 | "Does Investor Risk Perception Drive Asset Prices in Markets? Experimental Evidence" published in Journal of Banking and Finance.
2019-09-10 | "Does Investor Risk Perception Drive Asset Prices in Markets? Experimental Evidence" accepted by Journal of Banking and Finance.
2017-11-24 | Stefan Palan presents "Does Investor Risk Perception Drive Asset Prices in Markets? Experimental Evidence" at the Austrian Working Group on Banking and Finance workshop in Obergurgl.
2017-09-09 | Stefan Palan presents "Does Investor Risk Perception Drive Asset Prices in Markets? Experimental Evidence" at the Economic Science Association conference in Vienna.
2016-08-23 | First discussions about commencing experimental research into perception in finance.