Assoc. Prof. Dr. Stefan Palan (Head of Department)

Gender and financial behavior

Research repeatedly highlights the differences between the sexes in financial decision-making. This project addresses these inequalities in seven linked studies and examines the complex relationship between gender and financial behavior. The studies include a) the development of a new gender scale, b) a meta-analytic investigation and c) five online experiments. Through a multidimensional approach, this project sheds light on the complex interplay between gender and financial behavior and creates a methodologically sound understanding of the drivers of financial decisions in different gender groups.

Post-Earnings Announcement Drift

Share prices are generally slow to adjust to the information contained in earnings announcements published by companies. After a positive (negative) earnings surprise (defined as the difference between actual and expected earnings), share prices tend to drift upwards (downwards) for up to a year. This phenomenon is called post-earnings announcement drift (PEAD). The main contribution of this project to the study of PEAD is the use of laboratory experiments. In six separate papers, the project examines, among other things, the most prominent explanation in the literature for the occurrence of PEAD, the autocorrelation of earnings; whether transactions prevent the elimination of PEAD; and whether companies in Germany, France, the UK and Japan strategically choose the timing of their earnings announcements.