The investor in structured retail products : marketing driven or gambling oriented?

Detalhes bibliográficos
Autor(a) principal: Abreu, Margarida
Data de Publicação: 2017
Outros Autores: Mendes, Victor
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/15987
Resumo: Structured retail products (SRP) are one of the most visible faces of financial innovation and are becoming increasingly popular amongst retail investors. However, there is strong consensus that retail investors’ preference for structured products is difficult to explain using the standard rational theory, those products being in general sold at a significant premium. Studying the actual trading behavior of individual investors we provide evidence consistent with the view that SRP likely offer value to some informed investors compared to other products, that product complexity is a way to complete markets and that SRP allow investors to access segments otherwise not available to them. Nonetheless, our results also suggest that the increasing popularity of SRP is deeply related to investors’ behavioral biases, particularly overconfidence and gambling. Moreover, results also show that SRP trading activity cannot be dissociated from aggressive marketing practices.
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spelling The investor in structured retail products : marketing driven or gambling oriented?structured retail productsbehavioral financeoverconfidencegamblingmarketingStructured retail products (SRP) are one of the most visible faces of financial innovation and are becoming increasingly popular amongst retail investors. However, there is strong consensus that retail investors’ preference for structured products is difficult to explain using the standard rational theory, those products being in general sold at a significant premium. Studying the actual trading behavior of individual investors we provide evidence consistent with the view that SRP likely offer value to some informed investors compared to other products, that product complexity is a way to complete markets and that SRP allow investors to access segments otherwise not available to them. Nonetheless, our results also suggest that the increasing popularity of SRP is deeply related to investors’ behavioral biases, particularly overconfidence and gambling. Moreover, results also show that SRP trading activity cannot be dissociated from aggressive marketing practices.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaAbreu, MargaridaMendes, Victor2018-09-27T13:48:51Z2017-112017-11-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/15987engAbreu, Margarida e Victor Mendes (2017). "The investor in structured retail products : marketing driven or gambling oriented?". Instituto Superior de Economia e Gestão – REM Working paper nº 014 - 20172184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:45:51Zoai:www.repository.utl.pt:10400.5/15987Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:01:30.178903Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The investor in structured retail products : marketing driven or gambling oriented?
title The investor in structured retail products : marketing driven or gambling oriented?
spellingShingle The investor in structured retail products : marketing driven or gambling oriented?
Abreu, Margarida
structured retail products
behavioral finance
overconfidence
gambling
marketing
title_short The investor in structured retail products : marketing driven or gambling oriented?
title_full The investor in structured retail products : marketing driven or gambling oriented?
title_fullStr The investor in structured retail products : marketing driven or gambling oriented?
title_full_unstemmed The investor in structured retail products : marketing driven or gambling oriented?
title_sort The investor in structured retail products : marketing driven or gambling oriented?
author Abreu, Margarida
author_facet Abreu, Margarida
Mendes, Victor
author_role author
author2 Mendes, Victor
author2_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Abreu, Margarida
Mendes, Victor
dc.subject.por.fl_str_mv structured retail products
behavioral finance
overconfidence
gambling
marketing
topic structured retail products
behavioral finance
overconfidence
gambling
marketing
description Structured retail products (SRP) are one of the most visible faces of financial innovation and are becoming increasingly popular amongst retail investors. However, there is strong consensus that retail investors’ preference for structured products is difficult to explain using the standard rational theory, those products being in general sold at a significant premium. Studying the actual trading behavior of individual investors we provide evidence consistent with the view that SRP likely offer value to some informed investors compared to other products, that product complexity is a way to complete markets and that SRP allow investors to access segments otherwise not available to them. Nonetheless, our results also suggest that the increasing popularity of SRP is deeply related to investors’ behavioral biases, particularly overconfidence and gambling. Moreover, results also show that SRP trading activity cannot be dissociated from aggressive marketing practices.
publishDate 2017
dc.date.none.fl_str_mv 2017-11
2017-11-01T00:00:00Z
2018-09-27T13:48:51Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/15987
url http://hdl.handle.net/10400.5/15987
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Abreu, Margarida e Victor Mendes (2017). "The investor in structured retail products : marketing driven or gambling oriented?". Instituto Superior de Economia e Gestão – REM Working paper nº 014 - 2017
2184-108X
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv ISEG - REM - Research in Economics and Mathematics
publisher.none.fl_str_mv ISEG - REM - Research in Economics and Mathematics
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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