Individual Investor Perceptions, Behavior, and Performance During the Financial Crisis

A.O.I. Hoffmann, J.M.E. Pennings, T. Post

Research output: Contribution to conferenceConference paperAcademicpeer-review

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 languageEnglish
Publication statusPublished - 2011
Event18th Annual Meeting of the German Finance Association (DGF), University of Regensburg, Germany -
Duration: 30 Sep 20111 Oct 2011

Conference

Conference18th Annual Meeting of the German Finance Association (DGF), University of Regensburg, Germany
Period30/09/111/10/11

Fingerprint Dive into the research topics of 'Individual Investor Perceptions, Behavior, and Performance During the Financial Crisis'. Together they form a unique fingerprint.

Cite this