Beyond information: Disclosure, distracted attention, and investor behavior / Adrian Hillenbrand

Arbeitspapier

Financial disclosure documents provide investors with product details to facilitate informed investment decisions. We investigate whether the appearance - the visual frame - of disclosure documents impacts risk and return expectations and investment behavior. In our experiment, subjects decide about investments into real-life mutual funds. We find that subjects expect a smaller return variance, invest more and gather less correct information if visual distractors are present in the visual frame. Results are in line with the distracted attention mechanism and suggest that disclosure policies should take the visual frame into account.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Preprints of the Max Planck Institute for Research on Collective Goods ; No. 2015/20

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Household Saving; Personal Finance ; Consumer Protection ; Expectations; Speculations
• Subject: portfolio choice ; experiment ; disclosure ; mean-variance theory ; attention

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hillenbrand, Adrian ; Schmelzer, André
• Event: Veröffentlichung
• (who): Max Planck Institute for Research on Collective Goods
• (where): Bonn
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/144904
• Last update: 10.03.2025, 11:42 AM CET