Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/207078
Authors: 
Razen, Michael
Kirchler, Michael
Weitzel, Utz
Year of Publication: 
2019
Series/Report no.: 
Working Papers in Economics and Statistics No. 2019-12
Abstract: 
Risk-assessment and risk-taking in various forms are among the most important tasks financial professionals face in their daily work. A large body of experimental studies has shown a substantial effect of the decision domain (gain vs loss domain) on risk-taking, predominantly among students. In a series of experiments set in different contextual frameworks, we investigate whether this domain effect is also present among experienced finance professionals and compare their decisions with people from the general population. Our results show that employees in the finance industry are equally prone to the domain effect in risk-taking than the general population. Interestingly, for domain-specific risk-taking in a finance context, we find that professionals are more reluctant to sell loser stocks than non-professionals.
Subjects: 
Experimental Finance
Financial Professionals
Domain-specific risk-taking
JEL: 
C91
C93
D81
G41
Document Type: 
Working Paper

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