This paper examines investors’ reference point and satisfaction. We demonstrate that investors’ reference point and satisfaction are heavily affected by stock and market returns. Using an experimental design, we analyze ...

Asset-Backed securities (ABSs) have dominated the U.S. financial markets between the period of the late 90s and 2007; the start of the financial crisis. This was due to the rise of subprime mortgage lending within the U.S. ...

Since the launch of Bitcoin ten years ago, there has been a proliferation of digital currencies with market capitalizations of billions of dollars, growing academic literature and a mixed reception. These new currencies ...

Behavioral insights from (Cumulative) Prospect Theory (CPT) as an innovative theory of decision-making revolutionized financial risk research. Despite its theoretical appeal, the empirical relevance of CPT with regard to ...

Psychology studies have showed that current mood can influence risky decision making. When the mood of a large part of the society (i.e. the social mood) is affected in a similar direction, this is then expected to affect ...

This thesis sets out to find the risk-free asset. In the literature, this concept is often seen as a given and operationalized by government bond yields. This thesis first deconstructs the theoretical concept of the risk-free ...

What are the future return expectations of investors after experiencing a gain or loss in the financial market? In this research is the demonstration of no difference in future return beliefs and trading behaviour in a ...

This paper gives a comprehensive analysis of the difference in financial exposure towards the Euro Area and towards the US of global investors. It finds that, although the US is by far the number 1 destination of foreign ...

Finance theory indicates that corporate hedging can increase firm value by reducing costs of taxes, financial distress and agency costs, and by reducing cash flow volatility. This paper covers both a direct effect of ...

This paper examines whether an individual’s risk-taking changes when s/he is taking a decision for someone else. Using an online experiment with a mixed subject pool of bankers, managers and students, with gain loss and ...