Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144904
Authors: 
Hillenbrand, Adrian
Schmelzer, André
Year of Publication: 
2015
Series/Report no.: 
Preprints of the Max Planck Institute for Research on Collective Goods 2015/20
Abstract: 
Financial disclosure documents provide investors with product details to facilitate informed investment decisions. We investigate whether the appearance - the visual frame - of disclosure documents impacts risk and return expectations and investment behavior. In our experiment, subjects decide about investments into real-life mutual funds. We find that subjects expect a smaller return variance, invest more and gather less correct information if visual distractors are present in the visual frame. Results are in line with the distracted attention mechanism and suggest that disclosure policies should take the visual frame into account.
Subjects: 
portfolio choice
experiment
disclosure
mean-variance theory
attention
JEL: 
C91
D03
D14
D18
D84
Document Type: 
Working Paper

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