umu.sePublikationer
Ändra sökning
RefereraExporteraLänk till posten
Permanent länk

Direktlänk
Referera
Referensformat
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Annat format
Fler format
Språk
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Annat språk
Fler språk
Utmatningsformat
  • html
  • text
  • asciidoc
  • rtf
What do you expect?: individual investors' subjective expectations, information usage, and social interactions in financial decision-making
Umeå universitet, Samhällsvetenskapliga fakulteten, Handelshögskolan vid Umeå universitet, Företagsekonomi.
2017 (Engelska)Doktorsavhandling, sammanläggning (Övrigt vetenskapligt)
Abstract [en]

This thesis consists of an introductory part and four self-contained papers related to individual investors’ subjective expectations and their financial behavior. 

Paper [I] analyzes multiple measures of individual investors’ expectations of risk and return using survey data on a random sample of individual investors in Sweden. The results indicate that, even though expectations from different measures are correlated, the magnitude of especially the risk expectations varies considerably between measures. The variations in the expectations mainly relate to differences in the responses to the questions underlying the different measures, rather than to the methods used to obtain them. Evaluation of the measures using three different comparisons indicates that the expectation measure proposed by Dominitz and Manski (2011) is the only measure for which it is possible to distinguish between individuals’ expectations using all of the considered comparisons.

Paper [II] addresses the relationship between sophistication and the expectations of individual investors with respect to risk and return. The findings show that sophisticated investors have lower (higher) risk (return) expectations that are closer to objective measures than less sophisticated investors. These results are important, since they enhance the understanding of the underlying mechanisms through which sophistication could influence individuals’ financial decisions.

Paper [III] provides new evidence for the sources of information individual investors’ use when making financial decisions and the relationship between how frequently investors use this information and their expectations of the risk and return in a stock market index, their confidence in these expectations, and their portfolio risk and return. The findings indicate that individual investors use different sources of filtered financial information (e.g., information packaged by a professional intermediary) more frequently than unfiltered financial information (e.g., information from annual reports and financial statements). However, an increase in the frequency with which investors use filtered financial information is positively related to their confidence in their stock-market expectations and to the risk in their stock portfolios. For investors who instead use unfiltered financial information more frequently than filtered financial information, the results indicate that they have more accurate stock-market expectations, lower portfolio risk, and higher portfolio return.

Paper [IV] links individual investors’ financial risk-taking to the behavior of peers within their community. By using detailed data at the individual level, it is found that the risk-taking among peers affects individuals’ choice of portfolio risk. The results hold for the full sample of individuals concerning their choice of the overall proportion of risky assets and stock market participants’ choice of total and systematic stock-portfolio risk. Overall, the results stress that interaction with peers is an important channel through which individual risk-taking is affected.

Ort, förlag, år, upplaga, sidor
Umeå: Umeå universitet , 2017. , s. 75
Serie
Studier i företagsekonomi. Serie B, ISSN 0346-8291 ; 96
Nyckelord [en]
Behavioral finance, Beliefs, Confidence, Expectations, Financial information, Financial risk-taking, Household finance, Individual investors, Panel data, Portfolio choice, Portfolio return, Return, Risk, Social interaction, Sophistication, Stock market, Subjective probability, Survey research
Nationell ämneskategori
Företagsekonomi
Forskningsämne
företagsekonomi
Identifikatorer
URN: urn:nbn:se:umu:diva-134456ISBN: 978-91-7601-726-5 (tryckt)OAI: oai:DiVA.org:umu-134456DiVA, id: diva2:1093645
Disputation
2017-06-02, Hörsal C, Samhällsvetarhuset, Umeå universitet, Umeå, 13:15 (Engelska)
Opponent
Handledare
Tillgänglig från: 2017-05-12 Skapad: 2017-05-08 Senast uppdaterad: 2019-04-18Bibliografiskt granskad
Delarbeten
1. Evaluating Measures of Individual Investors’ Expectations of Risk and Return
Öppna denna publikation i ny flik eller fönster >>Evaluating Measures of Individual Investors’ Expectations of Risk and Return
(Engelska)Manuskript (preprint) (Övrigt vetenskapligt)
Abstract [en]

Purpose – The purpose of this paper is to measure individual investors’ expectations of risk and return and to evaluate different expectation measures.

Design/methodology/approach – We measure individual investors’ expectations of risk and return regarding an index fund and two stocks using survey data on a random sample of individual investors in Sweden. The survey contains three different return and four different risk expectation measures. To evaluate the different expectation measures, three different evaluation perspectives are considered.

Findings – The expectations obtained from the different measures are significantly correlated, but the magnitude between the measures differs considerably, especially between the risk expectations. Consequently, the same individual can express risk expectations that either under- or overestimate the forward risk, depending on the measure that is used. The variations in the expectations mainly relate to differences in the responses to the questions underlying the different measures, rather than to the methods used to obtain the expectations. The results from the evaluation of the measures indicate that the expectation measure proposed by Dominitz and Manski (2011) is the only measure for which it is possible to distinguish between individuals’ expectations, using all three of the evaluation perspectives.

Originality/value – This is, to the best of our knowledge, the first paper that evaluates different survey measures of individual investors’ expectations of risk and return.

Nyckelord
expectations, beliefs, risk, return, subjective probability, survey research
Nationell ämneskategori
Företagsekonomi
Identifikatorer
urn:nbn:se:umu:diva-134452 (URN)
Tillgänglig från: 2017-05-08 Skapad: 2017-05-08 Senast uppdaterad: 2018-06-09
2. Individual Investors’ Sophistication and Expectations of Risk and Return
Öppna denna publikation i ny flik eller fönster >>Individual Investors’ Sophistication and Expectations of Risk and Return
(Engelska)Manuskript (preprint) (Övrigt vetenskapligt)
Abstract [en]

This study investigates the relationship between individual investors’ level of sophistication and their expectations of risk and return by using eleven sophistication proxies that previous research has related to individuals’ financial decisions. The findings in this paper indicate that sophisticated investors have lower risk and higher return expectations that are closer to objective measures than those of less-sophisticated investors. These results are important, since they enhance the understanding of the underlying mechanisms through which sophistication can influence financial decisions.

Nyckelord
expectations, sophistication, risk, return, individual investors
Nationell ämneskategori
Företagsekonomi
Identifikatorer
urn:nbn:se:umu:diva-134450 (URN)
Tillgänglig från: 2017-05-08 Skapad: 2017-05-08 Senast uppdaterad: 2018-06-09
3. Individual investors’ information use, subjective expectations, and portfolio risk and return
Öppna denna publikation i ny flik eller fönster >>Individual investors’ information use, subjective expectations, and portfolio risk and return
2019 (Engelska)Ingår i: European Journal of Finance, ISSN 1351-847X, E-ISSN 1466-4364, Vol. 25, nr 15, s. 1351-1376Artikel i tidskrift (Refereegranskat) Published
Abstract [en]

What information do individual investors use when making their financial decisions and how is it related to their stock market expectations, their confidence in these expectations, and the risk and return of their stock portfolios? I study these questions by combining survey data on the information usage among individual investors in Sweden with detailed registry data on their stock portfolios. I find that investors use filtered financial information (e.g. information packaged by a professional intermediary) more frequently than they use unfiltered financial information (e.g. information from annual reports and financial statements). Investors who frequently use filtered financial information are, however, more confident in their stock market expectations and take larger risks in their stock portfolios. Investors that instead use unfiltered financial information take lower portfolio risks and obtain higher portfolio returns. The findings in this paper thus suggest that investors can improve their financial decisions by using more unfiltered financial information rather than filtered financial information when they make their financial decisions.

Ort, förlag, år, upplaga, sidor
Routledge, 2019
Nyckelord
Financial information; individual investors; expectations; confidence; portfolio return
Nationell ämneskategori
Företagsekonomi Ekonomi och näringsliv
Identifikatorer
urn:nbn:se:umu:diva-158256 (URN)10.1080/1351847X.2019.1592769 (DOI)000474727900001 ()2-s2.0-85063096926 (Scopus ID)
Anmärkning

Originally included in thesis in manuscript form

Tillgänglig från: 2019-04-17 Skapad: 2019-04-17 Senast uppdaterad: 2020-01-17Bibliografiskt granskad
4. Individuals’ Financial Risk-Taking and Peer Influence
Öppna denna publikation i ny flik eller fönster >>Individuals’ Financial Risk-Taking and Peer Influence
(Engelska)Manuskript (preprint) (Övrigt vetenskapligt)
Abstract [en]

Individual investor’s financial risk-taking is linked to the behavior among peers within ones community. By use of data at the individual level, including detailed information about financial holdings, wealth and a host of socioeconomic and demographic characteristics, it is found that risk-taking among peers affect individuals choice of portfolio risk. The results hold for the full sample of individuals concerning their choice of overall proportion of risky assets, as well as for stock market participants’ choice of total- and systematic stock portfolio risk. Overall, the results stress that interaction with peers’ is an important channel through which individuals’ risk-taking is affected.

Nyckelord
Individual investors, Social interaction, Portfolio choice, Stock market
Nationell ämneskategori
Företagsekonomi
Identifikatorer
urn:nbn:se:umu:diva-134454 (URN)
Tillgänglig från: 2017-05-08 Skapad: 2017-05-08 Senast uppdaterad: 2018-06-09

Open Access i DiVA

fulltext(1164 kB)321 nedladdningar
Filinformation
Filnamn FULLTEXT01.pdfFilstorlek 1164 kBChecksumma SHA-512
27a494a30b308a9b7baa7df51ecd095b4073a63062058a69d12bf6b867eb7e6fa7354294491c96813750750cf9cb0a7bd35c907f8ef63af2bd531c0ffa65d2ea
Typ fulltextMimetyp application/pdf
spikblad(183 kB)40 nedladdningar
Filinformation
Filnamn SPIKBLAD01.pdfFilstorlek 183 kBChecksumma SHA-512
f8b9048a57481d76e548ddd655c1e06c3eedfbcf3c782bf9de4c820f6df32d814f1d98ed0a96bfcda1aeaecae1a23e61be893d6ef5d3dd58be62470b2aded056
Typ spikbladMimetyp application/pdf

Personposter BETA

Stålnacke, Oscar

Sök vidare i DiVA

Av författaren/redaktören
Stålnacke, Oscar
Av organisationen
Företagsekonomi
Företagsekonomi

Sök vidare utanför DiVA

GoogleGoogle Scholar
Totalt: 321 nedladdningar
Antalet nedladdningar är summan av nedladdningar för alla fulltexter. Det kan inkludera t.ex tidigare versioner som nu inte längre är tillgängliga.

isbn
urn-nbn

Altmetricpoäng

isbn
urn-nbn
Totalt: 1565 träffar
RefereraExporteraLänk till posten
Permanent länk

Direktlänk
Referera
Referensformat
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Annat format
Fler format
Språk
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Annat språk
Fler språk
Utmatningsformat
  • html
  • text
  • asciidoc
  • rtf