Determinants of Investor Expectations and Satisfaction: A Study With Financial Professionals

25 Pages Posted: 4 Nov 2018 Last revised: 21 Oct 2019

See all articles by Rene Schwaiger

Rene Schwaiger

University of Innsbruck - Department of Banking and Finance

Michael Kirchler

University of Innsbruck

Florian Lindner

Max Planck Institute for Research on Collective Goods

Utz Weitzel

VU University Amsterdam; Tinbergen Institute; Radboud University

Date Written: October 12, 2018

Abstract

We investigate determinants of price expectations and satisfaction levels of financial professionals and students. In experiments with 150 professionals and 576 students, we systematically vary price paths according to the final return (positive or negative) and the way the final return is achieved (upswing followed by downswing or vice versa). Professionals show the most optimistic price expectations and are most satisfied if assets fall in price first and then recover. In addition, professionals' price expectations are highest after positive returns. Among students, qualitatively similar patterns emerge, but professionals' price expectations are less prone to framing effects.

Keywords: Investor Satisfaction, Price Expectations, Financial Professionals, Experimental Finance, Investor Behavior

JEL Classification: G02, G11, D03, C93

Suggested Citation

Schwaiger, Rene and Kirchler, Michael and Lindner, Florian and Weitzel, Utz, Determinants of Investor Expectations and Satisfaction: A Study With Financial Professionals (October 12, 2018). Journal of Economic Dynamics and Control, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3265719 or http://dx.doi.org/10.2139/ssrn.3265719

Rene Schwaiger

University of Innsbruck - Department of Banking and Finance ( email )

Innsbruck
Austria

Michael Kirchler

University of Innsbruck ( email )

Universit├Ątsstra├če 15
Innsbruck, Innsbruck 6020
Austria

Florian Lindner

Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

HOME PAGE: http://https://sites.google.com/site/florianlindner85/

Utz Weitzel (Contact Author)

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam
Netherlands

Tinbergen Institute ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Radboud University ( email )

Heyendaalseweg 141
Nijmegen, 6525 AJ
Netherlands

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