Investment Strategies of German Households in a Multi-layer Portfolio Framework

Dissertation, Otto-Friedrich-Universität Bamberg, 2018

This doctoral thesis applies the Behavioral Portfolio Theory (BPT) of Shefrin/Statman (2000) on household-level field data from Germany. The aim of the empirical analyses is twofold. First, to assess whether the BPT better explains households’ actual portfolio choice than neoclassical portfolio choice models. Second, to analyze households’ portfolio performance within the framework of the BPT. To meet these research aims, the analyses are based on foundations from the neoclassical framework as well as insights from the paradigms of new institutional economics, market microstructure, financial intermediation, and behavioral economics and finance. The findings of the empirical analyses are discussed in the context of the recent household finance literature. In addition, implications for households, researchers, policymakers, and regulators are provided.