Investor behaviour in an environment of uncertainty: the impact of persuasion on investor decisions

Abstract

The objective of this study is to investigate the impact of investor persuasion in an environment of uncertainty. The experimental method was used, with 576 non-professional investors. The experiment used a 2 × 2 factorial, for these six different scenarios were elaborated with the manipulation of the following variables: environment of uncertainty, characterised by risk and ambiguity; and, the persuasive argument of authority. The analysis technique used was the binomial test. The results showed that the investors' choices are more persuasive in: 1) risky investments than in investments with ambiguity; 2) reports of analysts whose element of authority is present than in reports in which they do not present persuasive elements; 3) environments of uncertainty. The research contributed to the literature on investor behaviour when exposed to ambiguity and risk.