Universität zu Köln

Kempf, Alexander, Merkle, Christoph ORCID: 0000-0002-5141-4639 and Niessen-Ruenzi, Alexandra (2014). Low Risk and High Return - Affective Attitudes and Stock Market Expectations. Eur. Financ. Manag., 20 (5). S. 995 - 1031. HOBOKEN: WILEY. ISSN 1468-036X

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Abstract

This experimental study investigates the impact of affective attitudes on risk and return estimates of stocks. Participants rate well-known blue-chip firms on an affective scale and forecast risk and return of the firms' stock. We find that positive affective attitudes lead to a prediction of high return and low risk, while negative attitudes lead to a prediction of low return and high risk. This bias increases with participants' confidence in their ratings and decreases with financial literacy. Firm characteristics such as a firm's marketing expenditures and the strength of its brand have a positive impact on its affective rating.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Kempf, Alexander UNSPECIFIED UNSPECIFIED UNSPECIFIED Merkle, Christoph UNSPECIFIED orcid.org/0000-0002-5141-4639 UNSPECIFIED Niessen-Ruenzi, Alexandra UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-424472
DOI:	10.1111/eufm.12001
Journal or Publication Title:	Eur. Financ. Manag.
Volume:	20
Number:	5
Page Range:	S. 995 - 1031
Date:	2014
Publisher:	WILEY
Place of Publication:	HOBOKEN
ISSN:	1468-036X
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language CROSS-SECTION; PREFERENCES; VOLATILITY; EMOTIONS; PERCEPTIONS; PSYCHOLOGY; ACTIVATION; BEHAVIOR; PRICES; GENDER Multiple languages Business, Finance Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/42447