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dc.contributor.authorKempf, Alexanderen_US
dc.contributor.authorNiessen-Ruenzi, Alexandraen_US
dc.contributor.authorMerkle, Christophen_US
dc.date.accessioned2010-10-28T14:42:29Z-
dc.date.availablestart=2010-10-28T14:42:29Z; end=2013-02-13-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/41360-
dc.description.abstractThis experimental paper investigates the impact of emotions on risk and return estimates of stocks. Participants rate well-known blue-chip firms on an emotional scale and forecast risk and return of the firms' stock. We find that positive emotions lead to a prediction of high return and low risk, while negative emotions lead to a prediction of low return and high risk. This bias increases with participants' confidence in their ratings and decreases with financial literacy. We conclude that firms with a positive emotional appeal attract less financially literate and more emotional investors. In line with this conjecture, we find that firms that are rated very positively are held by a larger fraction of retail investors.en_US
dc.language.isoengen_US
dc.publisherCentre for Financial Research Cologneen_US
dc.relation.ispartofseriesCFR working paper 09-10en_US
dc.subject.jelD80en_US
dc.subject.jelD81en_US
dc.subject.jelG10en_US
dc.subject.ddc330en_US
dc.subject.keywordEmotionsen_US
dc.subject.keywordRisk and Return Estimationen_US
dc.subject.keywordBehavioral Financeen_US
dc.subject.keywordAffect Heuristicen_US
dc.subject.stwAnlageverhaltenen_US
dc.subject.stwEmotionen_US
dc.subject.stwAktieen_US
dc.subject.stwKapitalertragen_US
dc.subject.stwRisikoen_US
dc.titleLow risk and high return - how emotions shape expectations on the stock marketen_US
dc.typeWorking Paperen_US
dc.identifier.ppn616611862en_US
dc.relation.isreplacedbyhttp://hdl.handle.net/10419/70122-
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:cfrwps:0910-
Appears in Collections:CFR Working Papers, Centre for Financial Research (CFR), Universität Köln

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