The Effect of Emotional Cues on Making Economic Decisions under Uncertainty

S. Bromuri, Mahdi Ebrahim, Y.D. Iren, P Geelen

Research output: Contribution to conferencePaperAcademic

Abstract

We investigate the understudied role of emotions on investors’ decision. Specifically, we identify six basic human emotions (i.e. happiness, sadness, surprise, fear, anger, and disgust) expressed by S&P 500 CEOs during their earning conference calls and examine their effects on financial analysts’ decisions (i.e. retain, buy or sell shares). To identify CEOs' emotions in more than 500 calls we developed a deep learning algorithm trained by experts annotating vocal data in a subset of calls. Our findings shed light on underlying emotional mechanisms of financial decision-making under uncertainty, thereby contributing to behavioral economic theory.
Original languageEnglish
Publication statusPublished - 6 Nov 2018
EventINFORMS Annual Meeting - Phoenix Convention Center, Sheraton Phoenix Downtown Hotel, Hyatt Regency Phoenix, and Renaissance Phoenix Downtown Hotel, Phoenix, United States
Duration: 4 Nov 20187 Nov 2018
http://meetings2.informs.org/wordpress/phoenix2018/

Conference

ConferenceINFORMS Annual Meeting
CountryUnited States
CityPhoenix
Period4/11/187/11/18
Internet address

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