bounce-back effect. Research limitation/implications: Future research may conduct field experiments to investigate which … factors. If the bounce-back effect holds more generally in other settings, it might have implications for predicting the …

Purpose – Bounce-back effect of stock market returns has been found empirically using different approaches. However … paper fills this gap and provides an explanation for bounce-back effect in stock market. Findings – This paper contributes … to the literature in threefold. The authors contribute a formal economic model to rationalize the bounce-back effect of …