Fourth Session of the “Yuncai” Academic Forum

Investment Decision-Making Behavior under Major Natural Disasters

As humanity progresses in technology and civilization, risks previously of concern have been controlled. However, the risks associated with climate change, earthquakes, and other major natural disasters have become focal points of attention. The investment decision-making behavior of humans during such disasters is a topic worthy of exploration. This report will empirically analyze investment decision-making behavior in the contexts of earthquakes and pandemics, showcasing how humans react to the exogenous shocks of historical major disasters.

Due to cognitive biases, investors may temporarily overestimate risks, leading to a decline in investment enthusiasm during common major disasters. In the case of unprecedented exogenous shocks from major disasters, the absence of prior information regarding the severity of risks can result in misjudgments. Initial assessments may underestimate risks, causing financial decisions to remain relatively stable; however, this may lead to excessive reactions later on, dramatically reducing financial investments.

Speaker: Yang Xiaoguang

Dr. Yang is a researcher at the Institute of Policy and System Sciences, Chinese Academy of Sciences. He serves as the President of the Chinese Society of System Engineering and Vice President of the Eurasian System Science Research Society. He is the editor-in-chief of the journals Theory and Practice of System Engineering and System Science and Mathematics. He has received several prestigious awards, including the Outstanding Contribution Award in Management Science, the National Excellent Science and Technology Worker Award, the China Youth Science and Technology Award, and the Mao Yishi Youth Science and Technology Award. He is recognized as a Special Contribution Expert by the State Council and has been selected for the National Outstanding Young Scholars Fund Project and as a national-level talent in the “Hundred-Thousand-Ten Thousand Project”.

Lecture Details:

Date: July 29, 2024

Time: 10:00 AM - 12:00 PM

Location: Room 115, Boyuan Building, South Campus

Organizer: Division of Science & Technology Administration