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Anders Stenkrona is a prolific writer and has published several important papers relating to financial markets and investor decision making patterns
Investment Decisions and Risk Preferences among Non-Professional Investors
Underpinning Anders’ ability to advise his clients and provide them with the tools to navigate the challenges of the New Banking Paradigm is his deep knowledge of Investor Decision Making patterns.
This know-how is backed by his rich academic background which includes a thesis risk preferences among regular rank and file investors.
Time Diversification in Pension Savings
Anders Stenkrona
(Winner of the Best Paper Award at the 13th Conference on the Theories and Practices of Securities and Financial Markets)
It is debated whether or not the risk of losing money on stocks declines if you increase the investment horizon long enough, a practice known as time-diversification.
There is evidence in this study that non-professional investors chose higher risk when the investment horizon is longer. This indicates that they tend to believe in time diversification.
Home Sweet Home: Home Bias and international diversification among individual investors
Anders Stenkrona and Lars Nordén
(Published in the Journal of Banking and Finance 31 (2007) 317-333
Holding a disproportionate amount of domestic stocks is a well known phenomena known as Home-Bias.
This is a unique study in the sense that it clarifies that the typical home-biased investor is a less sophisticated, male with high job-security.
Conclusions can be drawn that home-bias is linked to overconfidence and inflation hedgeing.
The Home Institution Bias
Anders Stenkrona and Grant McQueen
(Published in the Journal of Banking and Finance 36 (2012) 1627-1638
In theory, and probably in practice, local portfolio managers should be best equipped in managing local funds. A Swedish fund manager probably knows Swedish Stocks better than an American fund manager.
It turns out that non-professional investors disproportionally favour domestic fund managers over foreign, even when investing in foreign funds.
Portfolio Choice and Menu Exposure
Anders Stenkrona, Andrei Simonov and Massimo Massa
(Winner of the Best Paper Award in Behavioural Finance, European Finance Association 2006)
(Published in Redefining Retirement: How will Boomers fare. Chapter 12 (2007) – Pension Research Council, Wharton University)
In theory, how financial choices are presented should not have an impact on a rational investor.
It turns out that where the investment choice was positioned in the ”menu” had a disproportionately large impact on the choices non-professional investors made. For example, when more funds are offered in a certain category, the likelihood of choosing a fund from that category increases.
Stock Market Participation and Pension Reform
Anders Stenkrona, Andrei Simonov and Massimo Massa
Theory predicts that a rational investor will treat all investments as one optimal portfolio, whereas behaviour finance theorists hypothesised that investors use ”mental accounting”, treating different savings accounts differently.
We find evidence that non-professional investors use mental accounting and that mental accounting boosts savings.
Benefits of Contribution: Individual asset allocation, diversification and welfare in a defined contribution pension system
Anders Stenkrona and Lars Norden
A three step analysis of how well different participants did while choosing funds in the national pension system. All investment alternatives where organised into distinct asset classes and the analysis showed that less-sophisticated, older men chose better performing funds compared to other funds in the same category.
Investor Confidence, Information and Investment Activity
Anders Stenkrona and Lars Norden
Using a survey that was done in direct connection with non-professional investors pension choices, we find evidence that people who perceive themselves as competent are more likely to make an active investment choice than those who feel less competent. An interesting aspect is that those with higher perceived competence were more likely to actively choose the default alternative in the pension scheme.