Investment Decisions

Working Paper

Defined Contribution Plans and the Challenge of Financial Illiteracy

Retirement investing in the United States has changed dramatically. The classic defined-benefit (DB) plan has largely been replaced by the defined contribution (DC) plan. With the latter, individual employees’ decisions about how much to save for...Read more

Jill Fisch
Annamaria Lusardi
Andrea Hasler
07 November 2019

The Private Use of Credit Ratings: Evidence from Mutual Fund Investment Mandates

Credit ratings have been shown to be imperfect and sometimes biased measures of risk. Has this affected their use in unregulated settings? Using textual analysis, we measure the use of credit ratings in investment mandates of fixed income mutual...Read more

Ramin Baghai
Bo Becker
Stefan Pitschner
10 July 2019

What does earnings management signal? The role of managerial honesty in investment decisions

Accounting earnings management elicits varying reactions: To some observers, it signals low managerial honesty. To others, it indicates that firm managers are sharing private information. Accordingly, different investors may respond differently...Read more

Alexander Wagner
Rajna Gibson Brandon
Matthias Sohn
Carmen Tanner
20 July 2017