Volltext-Downloads (blau) und Frontdoor-Views (grau)

Do they trade as they say? Behavioral biases - comparing survey data and trading records

  • This article is about three widespread and far-reaching mistakes in financial markets, namely, the Equity Home Bias, Anchoring and Herding. We use a combination of two different sources, survey answers and actual trading patterns, in order to analyze those mistakes empirically. This two-pronged approach allows us to discover interrelations between talk and action and provides a robustness check for our findings. Equity Home Bias is more predominant in real trading than iestors admit in the questionnaire. In addition to domestic stocks, German iestors also overweight Non-German Eurozone stocks. Consequently, iestors hold an astonishing 82.13 per cent of their portfolio in stocks denominated in Euro. Anchoring in the survey is positively correlated with the Disposition Effect in actual trading. We ask iestors if they allow themselves to be influenced by others, and we demonstrate that there is a positive link between affirmative answers and Herding in real action. In addition, we study whether behavioral differences exist between various socio-demographic groups. Higher educated iestors are less inclined to exhibit the Equity Home Bias, Anchoring and Herding. Whereas gender hardly influences biases, interestingly, age is positively related to Equity Home Bias but negatively related to the other two biases.

Export metadata

Additional Services

Search Google Scholar


Document Type:Article
Author:Alexander Schüßler
Chairs and Professorships:Chair of Accounting and Auditing
Year of Completion:2013
In: Behavioral Finance and Asset Management, 14 (2013) 1, 37-51