Finance Group Radboud University

How can investments in sustainable funds be increased? Find below the link to the brand new working paper "Nudging Investors towards Sustainability: A Field Experiment with a Robo-Advisor" joint with Lars Hornuf, Christoph Merkle. 🧿 https://lnkd.in/eteS7Pd5 👁️🗨️ We ran a field experiment with a robo advisor to analyze the impact of default settings for sustainable investment choices and the drivers of sustainable investing. We find... 👉 Investors are more likely to choose sustainable over conventional investments if the sustainable investment option is set as the default. 👉 While only 23% opt for the sustainable option given the conventional investment is set as the default, 36% choose the sustainable investment option if it is set as the default. That is a 13pp or 56% increase! 🚀 👉 Conventional investors typically expect superior performance from conventional investments, while sustainable investors were optimistic about the outperformance of their sustainable investments. 👉 The results of the study suggest that, while sustainability preferences play a role, default options and the anticipated risk-adjusted returns primarily drive investment choices. 👉 Investors are not necessarily willing to sacrifice substantial financial gains for sustainability in a real-world setting. ➡️ Last week the paper has won the INFINZ Best Paper in Sustainable Investing Award at the 5th CEFGroup Sustainable Finance and Reporting Symposium. UZH Department of Finance Nijmegen School of Management / Faculteit der Managementwetenschappen Technische Universität Dresden Aarhus BSS - Aarhus University Finance Group Radboud University

New publication by our researcher Sven Nolte, joint with Henning Cordes, Philipp Decke and Judith Christiane Schneider on "Effects of price path shapes and decision frames on emotions and investment decisions: Experimental evidence" in the Journal of Behavioral Finance. The researchers analyze financial price paths and find that their shapes are related to investment behavior and emotions beyond the investor groups and settings that we previously analyzed in the literature. In particular, concave shapes are associated with lower investments and valence. Congratulations! Follow us on LinkedIn! Finance Group Radboud University Link to paper: https://lnkd.in/eZGCWYDR Nijmegen School of Management / Faculteit der Managementwetenschappen Leibniz Universität Hannover Fachhochschule Jena Institut für Banken und Finanzierung , Leibniz Universität Hannover

We congratulate our researcher Jan Schmitz for receiving an NWO (Dutch Research Council) XS grant of €50,000 for research on "Charity managers and the efficint provision of public goods. Jan's research (in NL): "De impact van liefdadigheidsinstellingen hangt af van hoe effectief ze maatschappelijke problemen aanpakken. Een belangrijke factor die deze effectiviteit beïnvloedt, is de manager die beslist over het type output, de toewijzing en de verdeling van donaties. Dit project introduceert lab-in-the-field experimenten in de literatuur over geven en onthult inefficiënties in de liefdadigheidsmarkt door beslissingen van managers van liefdadigheidsinstellingen. Het bestuderen van beslissingen aan de aanbodzijde duwt de literatuur in een nieuwe richting en draagt bij aan een holistisch begrip van liefdadigheidsmarkten, met verstrekkende gevolgen voor managers, regelgevers, donoren en ontvangers." Follow us on LnkedIn! Finance Group Radboud University All grants in NL for the NWO XS grant can be seen here: https://lnkd.in/e2HwvEpd Nijmegen School of Management / Faculteit der Managementwetenschappen

For the first time, a team from Radboud University participates in the CFA Research Challenge. Five students, mentored by Stefan Zeisberger, will spend the next half year analyzing and valuing a publicly listed company, competing with numerous other team from Belgium, the Netherlands and Luxembourg. The winning team progresses to the Europe+Middle East+Africa and ultimately the world competition in New York City. An exciting challenge! Wishing the team best of success! Finance Group Radboud University CFA Institute Research Foundation CFA Society Netherlands Nijmegen School of Management / Faculteit der Managementwetenschappen

Stefan Palan presented yesterday his research entitled "Retail Investors’ Disposition Effect and Order Choices", joint with Rudy De Winne and Nhung Luong, CFA. Using trading data of thousands of investors, the authors show that investors who are prone to the disposition effect differ from others in their use of limit orders and in their choice of limit prices. Investors who are prone to the disposition effect deliberately submit limit orders in line with the disposition effect. The Finance Group Radboud University thanks Stefan for his valuable insights and the fantastic visit in Nijmegen with lots of interesting conversations. Paper: https://lnkd.in/eCCkjdQ8 Follow us on LinkedIn! Finance Group Radboud University Nijmegen School of Management / Faculteit der Managementwetenschappen

Four of our researchers will present their latest research at the RBFC Research in Behavioral Finance Conference this week in Amsterdam at the Vrije Universiteit Amsterdam (VU Amsterdam) (joint with more colleagues from our group and beyond). Presentations: Anita Kopányi-Peuker: Disclosure of conflict of interest in long-run relationships (joint with Valeria Burdea) Benjamin Hiepler: How delegation affects reciprocity and trust? An experiment with human and computerized delegates (joint with Jan Schmitz, Dr. Frédéric Schneider and Stefan Zeisberger) Jorgo Goossens: Are risk preferences consistent for impactful financial decisions? (joint with Marike Knoef) Jorgo Goossens: Risk and time preferences in ESG domains (joint with Marike Knoef and Martijn de Vries) Stefan Zeisberger: The consequences of narrow framing for risk-taking: A stress test of myopic loss aversion (joint with Rene Schwaiger and Markus Strucks) 👁️🗨️ Follow us for more updates! Finance Group Radboud University Nijmegen School of Management / Faculteit der Managementwetenschappen UZH Department of Finance Department of Finance-Tilburg School of Economics and Management Banking and Finance @ University of Innsbruck Economics LMU Munich

👁️🗨️ Do investors struggle with long-term horizons, leading them to invest too conservatively? Could this be why many have trouble saving for retirement? Recent research by Markus Strucks (MBS School of Business), Stefan Zeisberger, and Rene Schwaiger (Universität Innsbruck) delves deep into this question. Their findings confirm that Myopic Loss Aversion (MLA)—the tendency to focus on short-term losses over long-term gains—does indeed deter people from investing. This behavior leads to overly cautious decisions, such as selling during market dips, which undermines long-term investment success. The researchers were able to demonstrate that MLA persists in more realistic settings than those which were tested in the literature, a topic that had sparked a debate among scholars in recent years. Their study, conducted over the past four years, has now been accepted for publication in Management Science! Stay tuned for more updates from the Finance Group Radboud University and follow us! cc: Nijmegen School of Management / Faculteit der Managementwetenschappen UZH Department of Finance Banking and Finance @ University of Innsbruck

Sascha Füllbrunn will give a public lecture as part of the Consumer Day of Hessen, Germany, in Frankfurt a.M. on November 6, organized by Verbraucherzentrale Hessen on the future of payments. His talk will focus on experience with cashless payments in the Netherlands. Other speakers at this event include Thomas Ranft, Ingmar Jung, Marcus Sann, Stephanie Bergbauer, Petra Gehring, and Philipp Wendt. A podium discussion will be held by Daniel Köfer, Uwe Becker, Jochen Ruths, Lars Witteck, Stefan Hardt, and Philipp Wendt. Follow us on LinkedIn! Finance Group Radboud University More info: https://lnkd.in/eP75DaCn

🎉 We are excited to welcome Gerrit Köchling (University of Dortmund) to the Finance Group Radboud University as a guest researcher between August and October 2024! Gerrit’s work focuses on corporate finance and governance, financial markets, and accounting, with special interest in behavioral and sustainable finance. With his wealth of knowledge and fresh perspectives, Gerrit's visit will undoubtedly spark new ideas and collaborations within our community. Gerrit's research has made a significant impact, with his notable publications including: 📌 Does Speculative News Hurt Productivity? Evidence from Takeover Rumors (with Christian Andres, Dmitry Bazhutov, Douglas Cumming, and Peter Limbach) in the JFQA Journal of Financial and Quantitative Analysis (2024) 📌How does corporate culture affect IPO price formation? (with Douglas Cumming, Dr. Daniel Neukirchen, and Peter N. Posch) in the Journal of Banking & Finance (2024) ❗Follow us on LinkedIn! Finance Group Radboud University cc: Nijmegen School of Management / Faculteit der Managementwetenschappen

Do investors diversify more when losses are very likely because then investors pay more attention to the decision? Alexander Nieber and Stefan Zeisberger together our former PhD student Charlotte Borsboom, PhD and Darren Duxbury find that investors' diversification behavior differs depending on whether gains and losses are at stake. Analyzing decisions by some 250 advanced retail investors the authors find that investors make superior diversification decisions when losses are to be expected. This is consistent with a loss attention hypothesis. Typically, investors make mistakes in the aggregation of outcomes, so that they diversify less when single assets are presented as opposed to (aggregated) portfolio outcomes. However, the authors find the opposite pattern for when losses are to be expected. Hence, the danger of losses seems to make investors attentive which reduces a very common and important mistake. Paper available open access: https://lnkd.in/evy5eiHw Follow us on LinkedIn to not miss any news: Finance Group Radboud University Nijmegen School of Management / Faculteit der Managementwetenschappen UZH Department of Finance Newcastle University