Beyond Information: Disclosure, Distracted Attention, and Investor Behavior

Adrian Hillenbrand, Andrr Schmelzer
2015 Social Science Research Network  
Financial disclosure documents provide investors with product details to facilitate informed investment decisions. We investigate whether the appearance -the visual frame -of disclosure documents impacts risk and return expectations and investment behavior. In our experiment, subjects decide about investments into real-life mutual funds. We find that subjects expect a smaller return variance, invest more and gather less correct information if visual distractors are present in the visual frame.
more » ... esults are in line with the distracted attention mechanism and suggest that disclosure policies should take the visual frame into account. JEL classification: C91, D03, D14, D18, D84
doi:10.2139/ssrn.2719548 fatcat:3sbimsldo5f3daubkj6wjzp63u