Research focus
- Household Finance, Financial Advice, and Financial Literacy
Relevance of the Topic: Financial literacy is pivotal to individuals' ability to make informed decisions about their investments. Without a foundational understanding of financial concepts, individuals may face challenges in navigating the intricate world of finance, potentially leading to detrimental investment decisions. Sound financial advice can bridge this knowledge gap, but may also be prone to biased incentives of financial advisors. As households navigate the complexities of financial decision-making, the role of financial advice, be it from human advisors or digital platforms, becomes pivotal. Exploring this intersection aids in understanding how households make informed financial decisions, the potential pitfalls they face, and the efficiency of advisory mechanisms in place. Such knowledge is invaluable for financial institutions, advisors, and policymakers aiming to better serve households and ensure their financial well-being.
Summary of our Research: Our research offers a comprehensive exploration of how households interact with financial advice and the subsequent impacts on their financial decisions. Key themes include the influence of financial literacy on receptivity to advice and its consequent effects on financial behaviors. The research underscores the importance of clear communication, examining the readability of financial product information and the challenges households face in comprehending them. Technological advancements in advisory, like robo-advisors, are assessed for their capability to cater to modern household financial needs. Additionally, the papers provide insights into specific behaviors such as local bias in investment choices and the dynamics of financial product adoption among households. - Sustainability, Corporate Responsibility, and ESG
Relevance of the Topic: The rise of environmental, social, and governance (ESG) concerns is reshaping the landscape of the financial world. As society becomes increasingly conscious of sustainability issues, the corporate sector's alignment with these concerns has become paramount. Investors, both individual and institutional, are looking beyond just profitability, seeking responsible corporate behavior. Understanding how ESG factors integrate into financial markets, influence corporate decisions, and affect investment choices is crucial for companies, investors, and policymakers to navigate this evolving landscape and ensure financial strategies align with sustainability goals.
Summary of our Research: Our research analyzes the relationship between corporate sustainability initiatives and financial markets. We evaluate the design and effectiveness of sustainability-linked loans in incentivizing genuine corporate sustainability efforts. The significance of ESG transparency is highlighted, focusing on the impacts of new sustainability labels on mutual funds and investor behavior. The correlation between corporate social responsibility, market efficiency, and potential misvaluation is explored, offering insights into the alignment between ESG considerations and market values. The role of shareholders in advocating for sustainability, particularly through soft engagements during annual meetings, and the broader trade-offs associated with ESG are examined. - Digital Finance, Technology, and Changing Behaviors
Relevance of the Topic: The digital transformation in the financial sector, characterized by the introduction and proliferation of technologies such as mobile banking, robo-advisors, online payments, and cryptocurrencies, has been reshaping the way consumers manage, invest, and think about money. As these technologies gain traction, it becomes imperative to understand their implications on financial decision-making and adoption factors. The topic holds significance because it aids policymakers, financial institutions, and consumers in navigating the evolving digital financial ecosystem.
Summary of our Research: Our research focus on the behavioral effects and adoption trends stemming from the digital evolution in finance. The papers delve into the nuances of mobile banking, examining its implications on financial decisions, its influence on traditional banking structures, and the key drivers behind its increased uptake. The potential of robo-advisors as alternatives to human financial advisors is also explored, alongside the behavioral shifts linked to mobile payments. In the realm of cryptocurrencies, we investigate into the importance of signaling during initial coin offerings and a look into gender-based disparities in Bitcoin understanding. Our research also sheds light on what drives investment choices in social trading platforms and provides insights into the characteristics of German online and mobile banking users. - Mutual Fund Market
Relevance of the Topic: The mutual fund market, a cornerstone of the financial industry, serves as a primary investment vehicle for individuals and institutions globally. The complexities and behaviors within this market can significantly affect the financial well-being of investors and can also effect market efficiency. Understanding the intricacies of fund management, including strategies, biases, and external influences like environmental, social, and governance (ESG) factors, is essential for investors, regulators, and financial professionals. Such insights can help align fund management practices with investor interests.
Summary of our Research: Our research explores the behaviors in the mutual fund market, with a special focus on the German market. It addresses the influence of ESG transparency, particularly how new sustainability labels impact mutual funds and investor behavior. The potential biases of bank-affiliated asset managers and their effects on mutual fund fees are also scrutinized. Herding behavior in mutual funds, which can lead to market inefficiencies, is a recurrent theme, with studies evaluating its presence, its relation to momentum strategies, and the complexity level of the management process.
- Publication Patterns of Professors in Business Administration, Finance, and Economics
Relevance of the Topic: The academic world is driven by research outputs, with published articles acting as a yardstick for scholarly accomplishment and success. However, behind these published articles lie intricate dynamics, including research methodologies, collaborative efforts, and external pressures such as the importance of journal rankings. Given the profound impact of these effects on a researcher’s career perspectives, understanding these dynamics is imperative. Scrutinizing patterns, biases, and the quality of academic research in business administration, economics, and finance enables an enriched understanding of the evolution and state of the field, with potential implications for future academic directions and policies.
Summary of our Research: Our research examines various facets of academic research in business administration, economics and finance. We shed light on the influence of journal rankings on publication strategies and the potential competitive distortions that arise. We also explore gender dynamics within academia, focusing on the effectiveness of an affirmative action program in addressing gender disparities. Over three decades, we document changing profiles of tenured business administration professors in Germany, providing insights into evolving academic trends. Differences in publication behaviors across various fields within business administration are empirically assessed. Moreover, in a series of publications, we analyze the quality and topics of papers presented at academic finance conferences. We also investigate into potential biases like alphabetical discrimination, and explore the effects of coauthorship on paper quality.