Research expertise

Some of our staff members are active in this area that combines insights from finance and psychology. Chris Veld and Yulia Veld-Merkoulova have several papers where they use an internet panel from Tilburg University (in The Netherlands) to study the behaviour of individual investors. Research findings include the fact that investors use different risk measures to evaluate investments. They are particularly concerned about their downside risk (losing a part of their original investment).

In research with Guy Kaplanski and Haim Levy they also find that investors strongly base their stock market expectations on recent returns realized in the stock market: if last week's returns are positive, they expect next week's returns to be positive and if last week's returns are negative, they expect next week's returns to be negative.