Investor happiness

Christoph Merkle; Daniel P. Egan; Greg B. Davies

doi:10.1016/j.joep.2015.05.007

Investor happiness

Christoph Merkle^*, Daniel P. Egan, Greg B. Davies

^*Corresponding author for this work

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review

15 Citations (Scopus)

Abstract

We study investor happiness in a panel survey of brokerage clients at a UK bank. When investors anticipate future happiness, they set their return aspirations according to personal portfolio risk, objectives, investment horizon, confidence, and other individual characteristics. They are accurate in their forecasts, only rarely are investors unhappy with outcomes they predicted they would be happy with, and vice versa. However, determinants of experienced happiness only partially correspond to the ones found for anticipated happiness. In particular, relative performance plays an important role investors do not anticipate. Having outperformed other people contributes to investor happiness, as does active trading success.

Original language	English
Journal	Journal of Economic Psychology
Volume	49
Pages (from-to)	167-186
Number of pages	20
ISSN	0167-4870
DOIs	https://doi.org/10.1016/j.joep.2015.05.007
Publication status	Published - 1 Aug 2015
Externally published	Yes

Keywords

Anticipation
Experience
Happiness
Individual investors
Return expectations

Access to Document

10.1016/j.joep.2015.05.007

Cite this

@article{c490d61dfe1d41deb412647a67c5867c,

title = "Investor happiness",

abstract = "We study investor happiness in a panel survey of brokerage clients at a UK bank. When investors anticipate future happiness, they set their return aspirations according to personal portfolio risk, objectives, investment horizon, confidence, and other individual characteristics. They are accurate in their forecasts, only rarely are investors unhappy with outcomes they predicted they would be happy with, and vice versa. However, determinants of experienced happiness only partially correspond to the ones found for anticipated happiness. In particular, relative performance plays an important role investors do not anticipate. Having outperformed other people contributes to investor happiness, as does active trading success.",

keywords = "Anticipation, Experience, Happiness, Individual investors, Return expectations",

author = "Christoph Merkle and Egan, {Daniel P.} and Davies, {Greg B.}",

year = "2015",

month = aug,

day = "1",

doi = "10.1016/j.joep.2015.05.007",

language = "English",

volume = "49",

pages = "167--186",

journal = "Journal of Economic Psychology",

issn = "0167-4870",

publisher = "Elsevier B.V.",

}

TY - JOUR

T1 - Investor happiness

AU - Merkle, Christoph

AU - Egan, Daniel P.

AU - Davies, Greg B.

PY - 2015/8/1

Y1 - 2015/8/1

N2 - We study investor happiness in a panel survey of brokerage clients at a UK bank. When investors anticipate future happiness, they set their return aspirations according to personal portfolio risk, objectives, investment horizon, confidence, and other individual characteristics. They are accurate in their forecasts, only rarely are investors unhappy with outcomes they predicted they would be happy with, and vice versa. However, determinants of experienced happiness only partially correspond to the ones found for anticipated happiness. In particular, relative performance plays an important role investors do not anticipate. Having outperformed other people contributes to investor happiness, as does active trading success.

AB - We study investor happiness in a panel survey of brokerage clients at a UK bank. When investors anticipate future happiness, they set their return aspirations according to personal portfolio risk, objectives, investment horizon, confidence, and other individual characteristics. They are accurate in their forecasts, only rarely are investors unhappy with outcomes they predicted they would be happy with, and vice versa. However, determinants of experienced happiness only partially correspond to the ones found for anticipated happiness. In particular, relative performance plays an important role investors do not anticipate. Having outperformed other people contributes to investor happiness, as does active trading success.

KW - Anticipation

KW - Experience

KW - Happiness

KW - Individual investors

KW - Return expectations

UR - http://www.scopus.com/inward/record.url?scp=84934990283&partnerID=8YFLogxK

U2 - 10.1016/j.joep.2015.05.007

DO - 10.1016/j.joep.2015.05.007

M3 - Journal article

AN - SCOPUS:84934990283

SN - 0167-4870

VL - 49

SP - 167

EP - 186

JO - Journal of Economic Psychology

JF - Journal of Economic Psychology

ER -

Investor happiness

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this