|Publication type:||Working paper – expertise – study|
|Title:||Responsibility sharing, beliefs and risk taking|
|Publisher / Ed. Institution:||Social Science Research Network|
|Subjects:||Risk taking; Delegation; Emotion; Cognitive dissonance; Disposition effect; Reversed disposition effect|
|Subject (DDC):||658.4: Executive Management|
|Abstract:||This paper analyzes experimentally whether responsibility sharing can reduce the emotionally motivated aspiration to bias beliefs toward previous decisions and whether this influences the subsequent investment behavior. The results suggest that decision-makers tend to form beliefs that justify the previous investment decisions. A stronger risk taking motivates more optimistic beliefs, in particular if it leads to losses. Sharing the responsibility for the risk taking reduces the bias in the beliefs and this helps decision-makers to reduce the risk taking and limit the losses. The results suggest that there is a beliefs channel, which explains why investors find it easier to realize losses with actively managed funds than losses with stocks.|
|License (according to publishing contract):||Licence according to publishing contract|
|Departement:||School of Management and Law|
|Organisational Unit:||Institute of Wealth & Asset Management (IWA)|
|Appears in collections:||Publikationen School of Management and Law|
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Bachmann, K. (2016). Responsibility sharing, beliefs and risk taking. Social Science Research Network. https://doi.org/10.2139/ssrn.2862308
Bachmann, K. (2016) Responsibility sharing, beliefs and risk taking. Social Science Research Network. Available at: https://doi.org/10.2139/ssrn.2862308.
K. Bachmann, “Responsibility sharing, beliefs and risk taking,” Social Science Research Network, Nov. 2016. doi: 10.2139/ssrn.2862308.
Bachmann, Kremena. Responsibility Sharing, Beliefs and Risk Taking. Social Science Research Network, 1 Nov. 2016, https://doi.org/10.2139/ssrn.2862308.
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