Arbeitspapier
Leverage and beliefs: Personal experience and risk taking in margin lending
What determines risk-bearing capacity and the amount of leverage in financial markets? Using unique archival data on collateralized lending, we show that personal experience can affect individual risk-taking and aggregate leverage. When an investor syndicate speculating in Amsterdam in 1772 went bankrupt, many lenders were exposed. In the end, none of them actually lost money. Nonetheless, only those at risk of losing money changed their behavior markedly - they lent with much higher haircuts. The rest continued as before. The differential change is remarkable since the distress was public knowledge. Overall leverage in the Amsterdam stock market declined as a result.
- Sprache
-
Englisch
- Erschienen in
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Series: Working Paper ; No. 148
- Klassifikation
-
Wirtschaft
Asset Pricing; Trading Volume; Bond Interest Rates
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
Economic History: Financial Markets and Institutions: Europe: Pre-1913
Financial Crises
- Thema
-
Leverage
collateralized lending
haircuts
personal experience
Kreditgeschäft
Anlageverhalten
Kapitalstruktur
Aktienmarkt
Notleidender Kredit
Bankrisiko
Risikopräferenz
Geschichte
Amsterdam
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Koudijs, Peter
Voth, Hans-Joachim
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Zurich, Department of Economics
- (wo)
-
Zurich
- (wann)
-
2014
- DOI
-
doi:10.5167/uzh-94473
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Koudijs, Peter
- Voth, Hans-Joachim
- University of Zurich, Department of Economics
Entstanden
- 2014