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Bailey McCann, Opalesque New York:

New research from the Toulouse Business School’s Management Research Center looks at the impact of the financial crisis in Europe. The project was led by Laurent German (project director), Nicolas Nalpas, both teacher-researchers at TBS and by Guillaume Baechler. Specifically, the study measured risk aversion in investors since the 2008 European financial crisis.

Unlike other research around the European component of the financial crisis, this work sees to scientifically measure the resulting risk aversion of such an extreme event. The study relies on data from 33 European financial institution directions (France, Germany, Belgium and Luxembourg) and represents 50% of investments made in Europe. Two axes are examined: investor psychology in a crisis situation and the evolution of investor aspirations with regards to the banking institution.

According to the report, investor behavior varies according to his or her wealth, because of this the crisis had a lasting psychological impact on less wealthy investors, whereas wealthier investors are now reverting back to pre-crisis behavior. This finding is at odds with the views of some market participants like the big banks, which have argued that all investor cohorts have altered their investment behavior in a lasting way.

On a country-by-country basis, the data shows that French investors have experienced more of an impact in terms of their investments in stocks than an......................

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