What question did this study set out to answer?

To determine how different presentation formats, data typologies, and perceived disclosure complexity influence retail investors' risk appraisal.

January 7, 2018European Journal of Finance

How financial information disclosure affects risk perception. Evidence from Italian investors’ behaviour

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Authors

NLNadia LincianoCommissione Nazionale per le Società e la Borsa CLCaterina LucarelliMarche Polytechnic University MGMonica GentileCommissione Nazionale per le Società e la Borsa

Discussion

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Implication

Experimental survey reveals that complex financial disclosures increase perceived risk in retail investors, suggesting one-size-fits-all formats cannot eliminate behavioral biases.

Key Points

To determine how different presentation formats, data typologies, and perceived disclosure complexity influence retail investors' risk appraisal.
Administered a consumer testing survey to 254 Italian bank customers.
Evaluated 4 distinct disclosure templates combining historical versus prospective data and varied framing (words, numbers, charts) across identical risk-return financial instruments.
Perceived riskiness of financial products varied significantly by disclosure format, with higher perceived complexity directly intensifying perceived risk.
Demographic factors including gender, age, personal traits, behavioral biases, and baseline financial knowledge substantially modified risk perceptions.

Cite This Study

Linciano et al. (2018) studied this question.

synapsesocial.com/papers/6a1d1880102421609404d7bb https://doi.org/10.1080/1351847x.2017.1414069

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January 7, 2018European Journal of Finance

How financial information disclosure affects risk perception. Evidence from Italian investors’ behaviour

View Full Paper

Ask AI

Bookmark

Authors

NLNadia LincianoCommissione Nazionale per le Società e la Borsa CLCaterina LucarelliMarche Polytechnic University MGMonica GentileCommissione Nazionale per le Società e la Borsa

Discussion

Member takes

Implication

Experimental survey reveals that complex financial disclosures increase perceived risk in retail investors, suggesting one-size-fits-all formats cannot eliminate behavioral biases.

Key Points

To determine how different presentation formats, data typologies, and perceived disclosure complexity influence retail investors' risk appraisal.
Administered a consumer testing survey to 254 Italian bank customers.
Evaluated 4 distinct disclosure templates combining historical versus prospective data and varied framing (words, numbers, charts) across identical risk-return financial instruments.
Perceived riskiness of financial products varied significantly by disclosure format, with higher perceived complexity directly intensifying perceived risk.
Demographic factors including gender, age, personal traits, behavioral biases, and baseline financial knowledge substantially modified risk perceptions.

Cite This Study

Linciano et al. (2018) studied this question.

synapsesocial.com/papers/6a1d1880102421609404d7bb https://doi.org/10.1080/1351847x.2017.1414069

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