Better Understood Companies Seem Like Safer Investments

Consumers often choose which companies to invest in based on whether their risk perception for the company fits with their risk tolerance. We find risk perceptions are heavily influenced by a factor not related to the true risk a stock carries – how well the person understands what the company does.


Andrew Long, Philip Fernbach, and Bart de Langhe (2016) ,"Better Understood Companies Seem Like Safer Investments", in NA - Advances in Consumer Research Volume 44, eds. Page Moreau, Stefano Puntoni, and , Duluth, MN : Association for Consumer Research, Pages: 179-184.


Andrew Long, University of Colorado, USA
Philip Fernbach, University of Colorado, USA
Bart de Langhe, University of Colorado, USA


NA - Advances in Consumer Research Volume 44 | 2016

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