ArticleJournal of banking & finance2021
Market shocks and professionals' investment behavior - Evidence from the COVID-19 crash.
Article in Journal of banking & finance, 2021. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 7 papers.
What it found
Each row is one number read from the abstract, on the scale the paper reported it, with its interval. Left of the dashed line favours the treatment, right favours the comparator. Under each row is the sentence it came from. New to these charts? A ten-minute tutorial.
The abstract states no effect estimate the extractor could read, or names no intervention and outcome on the map, so this paper lights no cell and moves no belief. It is still indexed, cited and linked below.
The trial behind it
Trials whose registry record cites this paper, or whose number appears in the abstract. A trial that started after this paper was published is citing it as background, not reporting it.
Neither the registry nor the abstract names a trial number. If this is a trial report, that itself is worth knowing.
Who cites it
7 citing papers in PubMed.
- COVID-19, a blessing in disguise for the Tech sector: Evidence from stock price crash risk.Research in international business and finance · 2023Article
- The Cryptocurrency Market in Transition before and after COVID-19: An Opportunity for Investors?Entropy (Basel, Switzerland) · 2022Article
- Government power and the value of political connections: Evidence from Covid-19 economic lockdowns.Finance research letters · 2022Article
- Pandemic or panic? A firm-level study on the psychological and industrial impacts of COVID-19 on the Chinese stock market.Financial innovation · 2022Article
- The stabilizing effect of social distancing: Cross-country differences in financial market response to COVID-19 pandemic policies.Research in international business and finance · 2021Article
- How the onset of the Covid-19 pandemic impacted pro-social behaviour and individual preferences: Experimental evidence from China.Journal of economic behavior & organization · 2021Article
- Impact of ambient sound on risk perception in humans: neuroeconomic investigations.Scientific reports · 2021Article
Corrections and comments
PubMed lists nothing against this paper. Absence here is not a guarantee, only a check that was made.
Authors and funding
3 authors.
Funding
No grant is acknowledged in the PubMed record.
Abstract
We investigate how the experience of extreme events, such as the COVID-19 market crash, influence risk-taking behavior. To isolate changes in risk-taking from other factors, we ran controlled experiments with finance professionals in December 2019 and March 2020. We observe that their investments in the experiment were 12 percent lower in March 2020 than in December 2019, although their price expectations had not changed, and although they considered the experimental asset less risky during the crash than before. This lower perceived risk is likely due to adaptive normalization, as volatility during the shock is compared to volatility experienced in real markets (which was low in December 2019, but very high in March 2020). Lower investments during the crash can be supported by higher risk aversion, not by changes in beliefs.
Indexed as
Identifiers
What OpenQuestion holds
Registered trials
Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.