TY  - UNPD
A1  - Uhr, Charline
A1  - Meyer, Steffen
A1  - Hackethal, Andreas
T1  - Smoking hot portfolios? self-control and investor decisions
T2  - SAFE working paper series ; No. 245
N2  - Self-control failure is among the major pathologies (Baumeister et al. (1994)) affecting individual investment decisions which has hardly been measurable in empirical research. We use cigarette addiction identified from checking account transactions to proxy for low self-control and compare over 5,000 smokers to 14,000 nonsmokers. Smokers self-directing their investment trade more frequently, exhibit more biases and achieve lower portfolio returns. We also find that smokers, some of which might be aware of their limited levels of self-control, exhibit a higher propensity than nonsmokers to delegate decision making to professional advisors and fund managers. We document that such precommitments work successfully.
T3  - SAFE working paper - 245 
KW  - self-control
KW  - portfolio allocation
KW  - individual investor
KW  - trading behavior
Y1  - 2019
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/49238
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-492389
UR  - https://ssrn.com/abstract=3347625
IS  - March 2019
PB  - SAFE
CY  - Frankfurt am Main
ER  -