Delegated decision making and social competition in the finance industry

Arbeitspapier

Two aspects of social context are central to the finance industry: (i) financial professionals make investment decisions for customers and (ii) social competition/rankings are a pervasive feature. We link both lines of literature to investigate professionals' risk-taking behavior when investing funds for clients. We run online and lab-in-the-field experiments with 965 financial professionals and collect survey evidence from 1,349 respondents. We find that rankings drive professionals' investment behavior: those lagging behind increase risk-taking, but this effect disappears as soon as professionals' incentives are flat. Moreover, we show that professionals' preferences for high rank are stronger than for the general population.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Papers in Economics and Statistics ; No. 2018-07

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Portfolio Choice; Investment Decisions ; Field Experiments
• Thema: experimental finance ; behavioral finance ; social competition ; rank incentives ; financial professionals ; delegated decision making ; investment game ; lab-in-the-field experiment

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kirchler, Michael ; Lindner, Florian ; Weitzel, Utz
• Ereignis: Veröffentlichung
• (wer): University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon)
• (wo): Innsbruck
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/184985
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ