Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Delegation Decisions in Finance
We run an online experiment with finance professionals and subjects from the general population (clients) to examine drivers and implications of clients' delegation decisions. We find that clients favor delegation to investment algorithms, followed by delegation to finance professionals with aligned incentives and lastly to those with fixed incentives. We also show that trust in investment algorithms or money managers (finance professionals), respectively, and clients' propensity to shift blame on others increases the likelihood of delegation, whereas own decision-making quality is associated with a decrease. In measuring the implications of clients' delegation decisions, we report high variability among finance professionals' perceptions of clients' preferred risk levels. We show that this results in overlaps in portfolio risk across risk-levels of clients, indicating problems of risk communication between clients and their money managers.
Delegation Decisions in Finance
We run an online experiment with finance professionals and subjects from the general population (clients) to examine drivers and implications of clients' delegation decisions. We find that clients favor delegation to investment algorithms, followed by delegation to finance professionals with aligned incentives and lastly to those with fixed incentives. We also show that trust in investment algorithms or money managers (finance professionals), respectively, and clients' propensity to shift blame on others increases the likelihood of delegation, whereas own decision-making quality is associated with a decrease. In measuring the implications of clients' delegation decisions, we report high variability among finance professionals' perceptions of clients' preferred risk levels. We show that this results in overlaps in portfolio risk across risk-levels of clients, indicating problems of risk communication between clients and their money managers.
Delegation Decisions in Finance
Holzmeister, Felix (Autor:in) / Holmen, Martin (Autor:in) / Kirchler, Michael (Autor:in) / Stefan, Matthias (Autor:in) / Wengström, Erik (Autor:in)
01.01.2019
RePEc:inn:wpaper:2019-21
Paper
Elektronische Ressource
Englisch
The Art of Delegation: Officer-Delegation in Development Control
| Taylor & Francis Verlag | 1998
Articles - The Art of Delegation: Officer-Delegation in Development Control
| Online Contents | 1998
Entropy Application to Improve Construction Finance Decisions
| British Library Online Contents | 2006
Entropy Application to Improve Construction Finance Decisions
| Online Contents | 2006
SIX STEPS TO EFFECTIVE DELEGATION
| Online Contents | 1997