Delegation Decisions in Finance

Felix Holzmeister*, Martin Holmén, Michael Kirchler, Matthias Stefan, Erik Wengström

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

3 Citations (Scopus)


Based on an online experiment with a sample of finance professionals and participants from the general population (acting as clients), we examine drivers and motives of clients’ choices to delegate investment decisions to agents. We find that clients favor delegation to investment algorithms, followed by delegation to finance professionals compensated with an aligned incentive scheme, and lastly to finance professionals receiving a fixed payment for investing on behalf of others. We show that trust in investment algorithms or finance professionals, and clients’ propensity to shift blame on others increase the likelihood of delegation, whereas clients’ own decision-making quality is associated with a decrease in delegation frequency.
Original languageEnglish
Peer-reviewed scientific journalManagement Science
Issue number8
Pages (from-to)4363-4971
Publication statusPublished - 04.10.2022
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management
  • experimental finance
  • finance professionals
  • delegation decisions


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