Visual Finance: The Pervasive Effects of Red on Investor Behavior

• 成果类型: Article
• 署名作者: Bazley, William J.; Cronqvist, Henrik; Mormann, Milica
• 署名单位: University of Kansas; University of Miami; Southern Methodist University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2020.3747
• 发表日期: 2021
• 页码: 5616-5641
• 关键词: color psychology; red color; INVESTOR BEHAVIOR; risk attitudes; household finance

摘要

The visual communication of financial information is commonplace and involves numerous facets, including the use of color. At the same time, perception of color influences behavior. Through eight experiments, we show that using red color to represent financial data impacts individuals' risk preferences, expectations of future stock returns, and trading decisions. The effects are not present in colorblind individuals and are muted in China, where red represents prosperity. Other colors, including yellow and blue, do not generate the same effects. Overall, we demonstrate that simple perceptual processes influence complex investor behavior, which is important given society's increasing reliance on visual communication.