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2021-08Diskussionspapier DOI: 10.18452/23242
Optimism gone bad? The persistent effects of traumatic experiences on investment decisions
dc.contributor.authorKim, Chi Hyun
dc.date.accessioned2021-08-26T09:41:08Z
dc.date.available2021-08-26T09:41:08Z
dc.date.issued2021-08none
dc.identifier.urihttp://edoc.hu-berlin.de/18452/23880
dc.description.abstractDo memories of highly emotional stock market crashes permanently affect the investment decisions of households? The Initial Public Offerings of Deutsche Telekom during 1996-2000 provide an optimal base to address this question, as it is known for its emotional character and is reputedly “the last time Germans invested in stocks.” Using Socio-Economic Panel (SOEP) household survey data, I show that having experienced this event leads to persistently lower stock market participation in the future. In addition, this effect is greater for households that had directly invested in Telekom shares, those being more likely to have high emotional experiences. Finally, I also show that such traumatic experiences on investment decisions have intergenerational consequences, significantly affecting how the next generation invests in the financial market.eng
dc.language.isoengnone
dc.publisherHumboldt-Universität zu Berlin
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectHousehold financeeng
dc.subjectstock market participationeng
dc.subjectfinancial criseseng
dc.subject.ddc330 Wirtschaftnone
dc.titleOptimism gone bad? The persistent effects of traumatic experiences on investment decisionsnone
dc.typeworkingPaper
dc.identifier.urnurn:nbn:de:kobv:11-110-18452/23880-8
dc.identifier.doihttp://dx.doi.org/10.18452/23242
local.edoc.pages35none
local.edoc.type-nameDiskussionspapier
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
dc.description.versionNot Reviewednone
dc.identifier.eissn2510-053X
dc.identifier.zdb2916406-0
bua.series.nameWorking Papers of the Priority Programme 1859 – Experience and Expectation. Historical Foundations of Economic Behaviournone
bua.series.issuenumber32
bua.departmentPhilosophische Fakultätnone
bua.series.editorAlexander Nützenadel, Jochen Strebnone

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