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Unleashing animal spirits : self-control and overpricing in experimental asset markets
Kocher, Martin; Lucks, Konstantin; Schindler, David - 2018
capacity to override or inhibit undesired impulses that may drive prices. We implement the first experiment to address the …
Persistent link: https://www.econbiz.de/10011899248
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Price dynamics and trader overconfidence
Ahrens, Steffen; Bosch-Rosa, Ciril; Roulund, Rasmus Pank - 2019
Overconfidence is one of the most important biases in financial markets and commonly associated with excessive trading and asset market bubbles. So far, most of the finance literature takes overconfidence as a given, "static" personality trait. In this paper we introduce a novel experimental...
Persistent link: https://www.econbiz.de/10012034133
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Common information-processing irrationality as trade creator
Klishchuk, Bogdan - 2020
We show that a common (identical across investors) irrationality in information processing can be enough to create nontrivial trade, using one of standard partial-equilibrium environments. We can attribute this trade to their common irrationality because we strip the investors and their...
Persistent link: https://www.econbiz.de/10012266529
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Optimal trade execution under endogenous order flow
Chen, Ying; Hoang Hai Tran; Horst, Ulrich - 2023
We consider an optimal liquidation model in which an investor is required to execute meta-orders during intraday trading periods, and his trading activity triggers child orders and endogenously affects future order flow, both instantaneously and permanently. Under the assumptions of risk...
Persistent link: https://www.econbiz.de/10014476807
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Herding of institutional traders : new evidence from daily data
Kremer, Stephanie - 2010
This paper sheds new light on herding of institutional investors by using a unique database that identifies every … transaction made by financial institutions in the German stock market. First, the analysis reveals that herding behavior of … previous studies overestimate herding. Third, our results suggest that herding by large financial institutions mainly results …
Persistent link: https://www.econbiz.de/10008665444
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An experimental analysis of overconfidence in tarif choice
Dowling, Katharina; Spann, Martin; Stich, Lucas - 2019
Digitalization has changed existing business models and enabled new ones. This development has been accompanied by the emergence of new pricing options and the possibility of applying established pricing models in new domains. Today, consumers can, for example, pay for accessing a product...
Persistent link: https://www.econbiz.de/10012033570
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Is proprietary trading detrimental to retail investors?
Fecht, Falko; Hackethal, Andreas; Karabulut, Yigitcan - 2013
We study a conflict of interest faced by universal banks that conduct proprietary trading alongside their retail banking services. Our dataset contains the stock holdings of each and every German bank and of their corresponding retail clients. We investigate (i) whether banks deliberately push...
Persistent link: https://www.econbiz.de/10010202878
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Black Monday, globalization and trading behavior of stock investors
Kurz-Kim, Jeong-Ryeol - 2016
Using a simple sign test, we report new empirical evidence, taken from both the US and the German stock markets, showing that trading behavior substantially changed around Black Monday in 1987. It turned out that before Black Monday investors behaved more as in the momentum strategy; and after...
Persistent link: https://www.econbiz.de/10011486252
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Who trades on momentum?
Baltzer, Markus; Jank, Stephan; Smajlbegovic, Esad - 2014
Using a unique data set that contains the complete ownership structure of the German stock market, we study the momentum and contrarian trading of different investor groups. Foreign investors and financial institutions, and especially mutual funds, are momentum traders, whereas private...
Persistent link: https://www.econbiz.de/10010471006
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How do taxes affect the trading behavior of private investors? : evidence from individual portfolio data
Buhlmann, Florian; Doerrenberg, Philipp; Voget, Johannes; … - 2020 - This version: May 13, 2020
We exploit a large reform of capital-gains taxation in Germany combined with portfolio-level daily panel data to study the causal effect of taxes on individual stock-trading behavior and the disposition effect. We find substantial spikes in selling probabilities around an intertemporal tax...
Persistent link: https://www.econbiz.de/10012295629