Professor of Finance
Eric Nowak is Full Professor of Finance at the Università della Svizzera italiana and has been an SFI faculty member since 2006. Throughout his career, Prof. Nowak has held visiting appointments at leading universities worldwide, including Stanford University and the University of Chicago.
His research areas include corporate governance, family firms, and private equity.
In a recent paper, Prof. Nowak and his co-authors seek to test the effects of advice and trust on financial risk-taking. To do so the researchers conduct an online experiment in which participants must make investment decisions in an environment where the suggestions and the trustworthiness of the financial advisor change. Data reveals that participants are more receptive to risky suggestions than conservative suggestions. Further computations show that trusted advice is always favored. Overall, results suggest that financial advisors induce investors to take on more risk and achieve higher returns, no matter the advisor’s ability.