University of Mannheim - Department of Banking and Finance
Daniel P. Egan
Betterment.com; Barclays Wealth
Greg B Davies
Barclays; University of Oxford - Said Business School
January 22, 2014
We study investor happiness in a panel survey of brokerage clients at a UK bank. When investors anticipate future happiness, they set their aspirations according to personal portfolio risk, objectives, investment horizon, condence, and other individual characteristics. They are accurate in their forecasts, only rarely are investors unhappy with outcomes they predicted they would be happy with, and vice versa. However, determinants of experienced happiness only partially correspond to the ones found for anticipated happiness. In particular, relative performance plays an important role investors do not anticipate. Having outperformed other people contributes to investor happiness, as does active trading success.
Number of Pages in PDF File: 44
Keywords: Happiness, Expectation, Experience, Individual Investors
JEL Classification: G02, G11working papers series
Date posted: September 26, 2013 ; Last revised: January 22, 2014
© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo3 in 0.453 seconds