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Does Feedback on Personal Investment Success Help?

54 Pages Posted: 7 Dec 2016  

Steffen Meyer

Leibniz Universität Hannover

Linda Urban

Goethe University Frankfurt - House of Finance

Sophie Ahlswede

Goethe University Frankfurt - House of Finance

Multiple version iconThere are 2 versions of this paper

Date Written: December 5, 2016

Abstract

In a field study with more than 1.500 customers of an online-broker we test what happens when investors receive repeated feedback on their investment success in a monthly securities account report. The reports show investors’ last year’s returns, costs, their current level of risk and their portfolio diversification. We find that receiving a report results in investors trading less, diversifying more and having higher risk-adjusted returns. Results are robust to controlling for potential play money accounts and changes in report designs. We also find that investors who are less likely to subscribe equally benefit from the report.

Keywords: household finance, field study, individual investors, reporting, investment mistakes, regulation

JEL Classification: D14, G11, G28

Suggested Citation

Meyer, Steffen and Urban, Linda and Ahlswede, Sophie, Does Feedback on Personal Investment Success Help? (December 5, 2016). SAFE Working Paper No. 157. Available at SSRN: https://ssrn.com/abstract=2880530 or http://dx.doi.org/10.2139/ssrn.2880530

Steffen Meyer (Contact Author)

Leibniz Universität Hannover ( email )

Königsworther Platz 1
Hannover, DE 30167
Germany

Linda Urban

Goethe University Frankfurt - House of Finance ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Sophie Ahlswede

Goethe University Frankfurt - House of Finance ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

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