Journal of Behavioral and Experimental Finance最新文献

Financial advice can be valuable during periods of economic uncertainty but measuring this value can be difficult. Using a nationally representative dataset of U.S. households during the Great Recession, we compare the net worth of households that retained a comprehensive financial adviser, a specialized financial adviser, or no financial adviser. A difference-in- difference analysis reveals that maintaining a relationship with a comprehensive financial adviser is associated with higher household net worth, relative to households with inconsistent relationships with advisers, or relationships in which only specified services are sought. Overall, our findings suggest that consumers benefit most when they make the financial decision to consistently work with a financial adviser from whom they seek comprehensive services.

Despite being proclaimed a “trust-free” technology, the link between blockchain and interpersonal trust remains understudied. By considering one of the most prominent use-cases of blockchain - smart contracts, we argue that the non-punitive nature of smart contracts may facilitate trustworthy behavior in human interaction by encouraging trustees to view themselves as internally motivated cooperators and to honor the trustor’s move that exceeds the encoded response. We test this argument through an online experiment in which the hallmark property of smart contracts—automated enforcement—is exploited. The results show that trustees in the experimental treatment return ten percentage points more than their counterparts in the trust treatment, thereby exhibiting a more trustworthy behavior. This experimental evidence shows that the presence of blockchain technology does not crowd out all properties of trusting behavior from human interactions.

This paper focuses on why momentum expresses different dynamics based on complex social networks. We construct an epidemiological information transmission model under the assumption of complex investor networks. We consider two kinds of networks with different degree distributions: uniform distribution and power-law distribution, and then we discuss the scenarios when the networks are assortative or disassortative. We find that the degree distribution and the degree correlation affect the momentum dynamics. In power-law networks, the assortative network exhibits a lower information diffusion rate in the short term but higher in the long term compared to the disassortative network. In contrast, the disassortative network has a higher information diffusion rate than the assortative network in uniform networks. In power-law networks, network assortativity exerts a significant influence on profit, whereas, in uniform networks, it has minimal impact on profit.

We study gender differences in stock market participation and financial resilience, appropriately controlling for financial literacy, as suggested by Almenberg and Dreber (2015). Financial literacy is very difficult to measure accurately, and our proxies generally contain a random error that spills over to other correlated variables, such as gender. Our main results show that after addressing measurement error with the instrumental variable approach proposed by Gillen et al. (2019), the gender gap in financial resilience is substantially reduced and becomes statistically indistinguishable from zero. This evidence suggests that financial literacy surveys should be carefully designed to reduce measurement error, for example by including multiple elicitations of the same item and providing a panel component.

We investigate the price clustering effect in cryptocurrency limit order books, where traders tend to place orders in round numbers. Analyzing 10-minute snapshots of five USD-denominated cryptocurrencies over 35 weeks (January–August 2020), we find that the frequency of specific cent components (e.g., 00, 50) increases significantly at higher price levels. Subsample analyses reveal that this effect strengthens with larger previous cumulative dollar depth and larger price distance from the best price. Furthermore, near-best-price and far-from-best-price dollar quotes exhibit a weak negative and strong positive price impact, respectively, confirming the informativeness of the clustering effect. These findings remain robust when considering superstitious two digits, cluster undercutting, last digits, excluding stale quotes, and additional price levels.

Should cryptocurrencies be viewed as a gambling tool or a risky investment instrument? While their unpredictable returns resemble gambling, recent studies show their prices having a time-varying correlation with traditional risky assets like the S&P 500. Many institutional investors have, thus, included cryptocurrencies in their portfolios for diversification. This paper examines the behavior of cryptocurrency market participants and investigates whether they behave like gamblers or investors. Literature shows that gamblers often engage in loss-chasing behavior, escalating risk-taking after losses that may go on indefinitely. In contrast, investors typically exhibit risk aversion after losses, though some might increase risk-taking after “paper losses,” a phenomenon called the “realization effect.” Our study found high-risk individuals exhibit gambling-like behavior, chasing both realized and paper losses. In contrast, we found limited evidence that low-risk individuals engage in risk aversion and realization effect, similar to investors. These insights are crucial for policymakers, as loss-chasing can lead to the siutation where people taking on more risk than they can afford, potentially resulting in bankruptcy.