Matthias Pelster What Impact Do Exogenous Stimuli Have on Financial Decision Making?

Matthias Pelster is Professor of Finance at Paderborn University. He has previously held research positions at New York University, Leuphana University of Lüneburg and TU Dortmund. His research focuses on behavioral finance, risk management, and corporate finance.

Area of Research

Behavioral Finance, Risk Management, Corporate Finance

since 2020

Professor for Finance

University of Paderborn (Universität Paderborn)

2019-2020

Visiting Research Professor

Stern School of Business, New York University

2017-2020

Assistant Professor

University of Paderborn (Universität Paderborn)

2014-2017

Assistant Professor

Leuphana University, Lüneburg

Institute of Finance and Accounting

2013-2014

Post-doctoral Researcher

TU Dortmund University (Technische Universität Dortmund)

Chair of Finance

2009-2013

Research and Teaching Fellow

TU Dortmund University (Technische Universität Dortmund)

Chair of Finance

2019

Habilitation

University of Paderborn (Universität Paderborn)

Field of Expertise: Business Administration

2009-2013

Ph.D. in Finance

TU Dortmund University (Technische Universität Dortmund)

Chair for Finance, summa cum laude

2003-2009

Diploma in Mathematics and Business Administration

TU Dortmund University (Technische Universität Dortmund)

- Journal of Banking & Finance

- Journal of Risk and Insurance

- Journal of Empirical Finance

- Journal of Economic Behavior & Organization

- Journal of Behavioral and Experimental Finance

- German Finance Association

- European Finance Association

- American Finance Association

- Financial Management Association

Prizes

- Best Paper Award, European Academy of Management Annual Conference (2019)

- Dean’s Young Scholar Research Award, Faculty of Business Administration and Economics, Paderborn University (2019)

- Academy of Science and Art NRW, Shortlisted for the “Junge Kolleg” (2018)

- Heinz Sauermann Advancement Award for Experimental Economic Research (2018)

Fellowships

- Berkley Fellowship: St. John’s School of Risk Management, The Peter J. Tobin College of Business, St. John’s University (2017)

- Project: “Managerial personality traits and selective hedging”, The Frankfurt Institute for Risk Management and Regulation (FIRM), (2020)

- DFG: Project “Social interactions and (financial) decision-making” (2020)

- Project: “Attention triggers and retail investor trading”, Fritz Thyssen Stiftung (2019)

- Project: “Social Trading and the Wisdom of the Crowd”, Fritz Thyssen Stiftung (2016 - 2017)

External stimuli are increasingly prevalent in the digital age, competing for our attention, urging us to action. In this video, MATTHIAS PELSTER explores the extent to which attention triggers (like push notifications) increase risk taking in financial markets. Focusing on customers of a large broker, Arnold, Pelster & Subrahmanyam are able to use a difference-in-differences approach to compare the behaviors of those who receive such push notifications and those who do not. The work shows that attention triggers induce investors to take greater risks. This effect is more evident for particular demographics. Future research should analyze the effects of attention triggers on other investment dimensions like portfolio composition.

LT Video Publication DOI: https://doi.org/10.21036/LTPUB10954

Attention Triggers and Investors’ Risk-Taking

  • Marc Arnold, Matthias Pelster and Marti G. Subrahmanyam
  • Journal of Financial Economics
  • Published in 2021
Marc Arnold, Matthias Pelster and Marti G. Subrahmanyam. "Attention Triggers and Investors’ Risk-Taking." Journal of Financial Economics (2021). doi:10.1016/j.jfineco.2021.05.031.