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Attention Distribution of Current Key Investor Documents: Standardization as a Long-Term Goal of the PRIIP Regulation

Author

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  • P. Münchhalfen

    (University of Hagen)

  • R. Gaschler

    (University of Hagen)

Abstract

The regulation of financial products is generally increasing in response to misconduct or crises that have led to losses for (retail) investors. Under the guise of various directives and laws, international and national regulators have introduced rules and standards to restore investor confidence. We tested the success of these efforts by analysing the distribution of attention in current product information sheets in an eye-tracking experiment. The results suggest that regulation has been successful as attention profiles of the different sections of product information are highly similar for different products. This suggests first success of regulation with respect to the standardization of product information sheets. However, this increased comparability does not necessarily lead to an improvement in the investment decisions of private investors, as a further aim of regulation, the increase in comprehensibility cannot be confirmed by this investigation.

Suggested Citation

  • P. Münchhalfen & R. Gaschler, 2021. "Attention Distribution of Current Key Investor Documents: Standardization as a Long-Term Goal of the PRIIP Regulation," Journal of Consumer Policy, Springer, vol. 44(1), pages 73-94, March.
    • Handle: RePEc:kap:jcopol:v:44:y:2021:i:1:d:10.1007_s10603-020-09473-x
    DOI: 10.1007/s10603-020-09473-x
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    References listed on IDEAS

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    Cited by:

    1. Borozan, Miloš & Loreta, Cannito & Riccardo, Palumbo, 2022. "Eye-tracking for the study of financial decision-making: A systematic review of the literature," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).

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