Abstract
We study how during the financial crisis individual investor perceptions change, impact trading and
risk-taking behavior, and explain performance. Based on monthly survey data and matching brokerage records
from April 2008 to March 2009, we find that successful investors had higher return expectations and higher risk
aversion. Furthermore, they traded less, took less risk, and had lower buy-sell ratios. Investors who outperformed
during the height of the crisis (September–October 2008) also performed better before. Afterward, however, they
became less risk averse, were no longer less likely to trade, and no longer outperformed, suggesting that their
success made them overconfident
| Original language | English |
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| Publication status | Published - 2011 |
| Event | 18th Annual Meeting of the German Finance Association (DGF), University of Regensburg, Germany - Duration: 30 Sep 2011 → 1 Oct 2011 |
Conference
| Conference | 18th Annual Meeting of the German Finance Association (DGF), University of Regensburg, Germany |
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| Period | 30/09/11 → 1/10/11 |