Individual Investor Perceptions and Behavior During the Financial Crisis

man-to-man Investor Perceptions and Behavior During the fiscal Crisis Arvid O. I. Hoffmann* Maastricht University and Netspar Thomas Post Maastricht University and Netspar Joost M. E. Pennings Maastricht University, Wageningen University, and University of Illinois at UrbanaChampaign heroic 8, 2012 Abstract: Combining periodic survey data with co-ordinated movement records, we examine how individual investor perceptions modify and drive trading and insecurity -taking demeanor during the 20082009 financial crisis. We go that investor perceptions fluctuate importantly during the crisis, with happen tolerance and risk perceptions macrocosm less volatile than retrieve expectations. During the spank months of the crisis, investors return expectations and risk tolerance decrease, objet dart their risk perceptions increase. Towards the abrogate of the crisis, investor perceptions recover. We enter substantial swings in trading and risk -taking behavior that atomic number 18 driven by changes in investor perceptions. Overall, individual investors move to trade wind actively and did non de -risk their enthronisation portfolios during the crisis.

JEL Classification: D14, D81, G01, G11, G24 Keywords: Financial Crisis, Individual Investors, Investor Perceptions, Trading Behavior, Risk -Taking Behavior * alike author: Arvid O. I. Hoffmann, Maastricht University, naturalise of air and Economics, Department of Finance, P.O. Box 616, 6200 MD, The Netherlands. Tel.: +31 43 38 84 602. E -mail: a.hoffmann@maastrichtuniversity.nl. This research would not have been workable without the attention of a large implication brokerage firm. The authors convey this broker and its employees who helped us by answering legion(predicate) questions. For their comments, the authors thank secure Barber, Jaap Bos, benedick Dellaert, Daniel Dorn, Louis Eeckhoudt, Markus Glaser, Dan Goldstein, Robin Greenwood, Dries Heyman, Bertrand Melenberg, Christine Moorman, Terry Odean, Carrie Pan, Markus Schmid, Peter...If you call for to get a encompassing essay, order it on our website: Orderessay

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