We deal with empirical capital market research, behavioral finance, experimental finance and asset management. One focus of our research is to examine the validity of the traditional financial market theory and in particular the strict assumptions behind the "homo oeconomicus" in reality.
Within a "Bottom-up" approach we try to draw a detailed and realistic picture of the behaviour of participants in capital markets aiming to derive implications from their behaviour. On the other hand, our "Top-down" approach aims to identify, explain and predict "abnormal" patterns in market parameters (e.g. equity returns, company valuations or liquidity) that are difficult to reconcile with standard models. In this respect, we examine both: the micro level, i.e the decision-making behaviour of investors, companies, journalists, analysts or other market participants; and the macro level, i.e. the analysis of capital markets.