Kempf, Alexander; Niessen-Ruenzi, Alexandra; Merkle, … - Institut für Finanzmarktforschung, Wirtschafts- und … - 2009
This experimental paper investigates the impact of emotions on risk and return estimates of stocks. Participants rate well-known blue-chip firms on an emotional scale and forecast risk and return of the firms' stock. We find that positive emotions lead to a prediction of high return and low...