Attention and biases : evidence from tax-inattentive investors

Justin Birru (The Ohio State University), Fernando Chague (São Paulo School of Economics - FGV), Rodrigo De-Losso (University of Sao Paulo), Bruno Giovannetti (São Paulo School of Economics - FGV)

We first provide evidence of some retail investors taking real trading (selling) decisions which are clearly sub-optimal even from an ex-ante perspective. We then show that these investors also exhibit stronger investment biases, namely, the disposition effect, underdiversification, preference for lottery-like stocks, likelihood of purchasing salient stocks, and extrapolation. Our study is the first to relate several well-known investment biases with a real ex-ante sub-optimal trading decision in the cross-section of retail investors

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Year of publication:	[2019]
Authors:	Birru, Justin ; Chague, Fernando ; De-Losso, Rodrigo ; Giovannetti, Bruno
Publisher:	[Columbus, Ohio] : The Ohio State University, Fisher College of Business, Charles A. Dice Center for Research in Financial Economics
Subject:	retail investors \| behavioral inattention \| stock-picking performance \| behavioral biases \| heuristics \| bunching \| financial mistakes \| Anlageverhalten \| Behavioural finance \| Systematischer Fehler \| Bias \| Verhaltensökonomik \| Behavioral economics \| Experiment \| Institutioneller Investor \| Institutional investor

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Extent:	1 Online-Ressource (circa 61 Seiten) Illustrationen
Series:	Fisher College of Business working paper series. - Columbus, Ohio : [Verlag nicht ermittelbar], ZDB-ID 2189279-9. - Vol. WP 2019, 22 Charles A. Dice Center Working Paper ; No. 2019-22 Fisher College of Business working paper series. - Columbus, Ohio : [Verlag nicht ermittelbar], ZDB-ID 2412551-9. - Vol. WP 2019-03, 022
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.3459478 [DOI]
Classification:	C93 - Field Experiments ; D83 - Search, Learning, Information and Knowledge ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; G11 - Portfolio Choice ; G12 - Asset Pricing ; g40 ; g41 ; H31 - Household
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012120317