An experimental study on investors' status quo bias

Abstract

Status quo bias is an important factor which affects investors' decision-making. The existing research on this issue only considers Prospects Theory. In fact, framing effect, investor sentiment and information structure are also important variables which affect status quo bias. But the existing papers are less involved to study status quo bias from the three aspects above. This paper researches the impact on investors status quo bias from the three aspects of framing effect, investor sentiment and information structure in the experimental method. The results show that: The investor status quo bias in the margined frame of the investment portfolio is higher than that in the ratio frame of the investable portfolio. There is status quo bias of investors in the three emotions conditions. In the positive emotions investors status quo bias is lower and in the negative emotions investors status quo bias is higher. The amount of choose the determined probability is five times that choose uncertainty probability. The level of status quo bias in self-status assignment group is higher than that in external status assignment group.

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