The Finance Brown Bag Seminar is held by the Institute for Finance, Banking and Insurance (WU Vienna) and the Vienna Graduate School of Finance (VGSF). It serves as a presentation platform for PhD students, faculty members, and visitors. An overview of BBS on the website of the Institute for Finance, Banking and Insurance.
Tobin Hanspal, Vienna University of Economics and Business & VGSF
Educating Investors about Dividends
We educate a sample of investors about the benefits of dividend reinvestment and the costs associated with misperceiving dividends as additional, free income. The intervention causes investors to upward adjust planned dividend reinvestment. In the field, these investors become more likely to reinvest their earned dividends into the same asset or into passive funds, relative to previously received dividends and a placebo treatment sample. Investors who stated that they learned the most from the intervention updated their plans and field behavior by the largest extent. Our study documents that simple, targeted, and focused educational interventions can affect downstream investment behavior.