{"id":8628,"date":"2020-07-09T09:10:49","date_gmt":"2020-07-09T08:10:49","guid":{"rendered":"http:\/\/www.economicsobservatory.com\/ongoing-research\/volatility-shocks-and-investment-behavior"},"modified":"2020-07-09T09:10:49","modified_gmt":"2020-07-09T08:10:49","slug":"volatility-shocks-and-investment-behavior","status":"publish","type":"ongoing-research","link":"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/volatility-shocks-and-investment-behavior","title":{"rendered":"Volatility shocks and investment behavior"},"content":{"rendered":"<p>We investigate how volatility shocks influence investments into a risky asset, perceptions about the asset\u2019s risk, its future price\/return development, and investor satisfaction. We run investment experiments mimicking volatility shocks with two subject pools (financial professionals and students) in two waves: one during a comparatively tranquil stock market period in December 2019 and one during the volatile period of March 2020 caused by the Covid-19 pandemic. In the experiments, participants take investment decisions in six treatments differing in (i) the direction of the volatility shock (down, up, straight) and (ii) the presentation format of the time series (prices or returns). We particularly investigate the influence of changes in risk preferences, triggered by the Covid-19 pandemic, on investment behavior in the experiment.<\/p>\n<p><\/p>\n","protected":false},"template":"","categories":[],"frequency":[],"type_of_data":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Volatility shocks and investment behavior - Economics Observatory<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/volatility-shocks-and-investment-behavior\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Volatility shocks and investment behavior - Economics Observatory\" \/>\n<meta property=\"og:description\" content=\"We investigate how volatility shocks influence investments into a risky asset, perceptions about the asset\u2019s risk, its future price\/return development, and investor satisfaction. We run investment experiments mimicking volatility shocks with two subject pools (financial professionals and students) in two waves: one during a comparatively tranquil stock market period in December 2019 and one during [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/volatility-shocks-and-investment-behavior\" \/>\n<meta property=\"og:site_name\" content=\"Economics Observatory\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@econobservatory\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/volatility-shocks-and-investment-behavior\",\"url\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/volatility-shocks-and-investment-behavior\",\"name\":\"Volatility shocks and investment behavior - Economics Observatory\",\"isPartOf\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#website\"},\"datePublished\":\"2020-07-09T08:10:49+00:00\",\"dateModified\":\"2020-07-09T08:10:49+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/volatility-shocks-and-investment-behavior#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/volatility-shocks-and-investment-behavior\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/volatility-shocks-and-investment-behavior#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.economicsobservatory.com\/test\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Volatility shocks and investment behavior\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#website\",\"url\":\"https:\/\/www.economicsobservatory.com\/test\/\",\"name\":\"Economics Observatory\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.economicsobservatory.com\/test\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#organization\",\"name\":\"Economics Observatory\",\"url\":\"https:\/\/www.economicsobservatory.com\/test\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.economicsobservatory.com\/wp-content\/uploads\/2021\/06\/Logo-for-Twitter.png\",\"contentUrl\":\"https:\/\/www.economicsobservatory.com\/wp-content\/uploads\/2021\/06\/Logo-for-Twitter.png\",\"width\":540,\"height\":392,\"caption\":\"Economics Observatory\"},\"image\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/twitter.com\/econobservatory\",\"https:\/\/www.linkedin.com\/company\/economics-observatory\/\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Volatility shocks and investment behavior - Economics Observatory","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/volatility-shocks-and-investment-behavior","og_locale":"en_GB","og_type":"article","og_title":"Volatility shocks and investment behavior - Economics Observatory","og_description":"We investigate how volatility shocks influence investments into a risky asset, perceptions about the asset\u2019s risk, its future price\/return development, and investor satisfaction. 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