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Accruals and Aggregate Stock Market Returns

Hirshleifer, David A. - 2008

accruals contain information about changes in discount rates, or that firms manage earnings in response to market …

Persistent link: https://www.econbiz.de/10012727317

Do Investors Overvalue Firms with Bloated Balance Sheets?

Hirshleifer, David A. - 2005

If investors have limited attention, then accounting outcomes that saliently highlight positive aspects of a firm's performance will promote high market valuations. When cumulative accounting value added (net operating income) over time outstrips cumulative cash value added (free cash flow), it...

Persistent link: https://www.econbiz.de/10012737563

Limited Attention, Information Disclosure, and Financial Reporting

Hirshleifer, David A. - 2005

This paper models firms' choices between alternative means of presenting information, and the effects of different …

Persistent link: https://www.econbiz.de/10012737608

Thought and Behavior Contagion in Capital Markets

Hirshleifer, David A. - 2008

Prevailing models of capital markets capture a limited form of social influence and information transmission, in which … the beliefs and behavior of an investor affect others only through market price, information transmission and processing …. Social influence is central to how information and investor sentiment are transmitted, so thought and behavior contagion …

Persistent link: https://www.econbiz.de/10012771633

Driven to Distraction : Extraneous Events and Underreaction to Earnings News

Hirshleifer, David A. - 2018

Psychological evidence indicates that it is hard to process multiple stimuli and perform multiple tasks at the same time. This paper tests the investor distraction hypothesis, which holds that the arrival of extraneous news causes trading and market prices to react sluggishly to relevant news...

Persistent link: https://www.econbiz.de/10012706515

Herd Behavior and Cascading in Capital Markets : A Review and Synthesis

Hirshleifer, David A. - 2002

We review theory and evidence relating to herd behavior, payoff and reputational interactions, social learning, and informational cascades in capital markets. We offer a simple taxonomy of effects, and evaluate how alternative theories may help explain evidence on the behavior of investors,...

Persistent link: https://www.econbiz.de/10012741628

Limited Investor Attention and Stock Market Misreactions to Accounting Information

Hirshleifer, David A. - 2011

over-reaction to different earnings components. Investor neglect of information in current-period earnings about future …, accruals, cash flows, and pro fit anomalies to the forecasting power of current earnings-related information for future … earnings, the degree of investor attention to different types of information, and the volatilities of and correlation between …

Persistent link: https://www.econbiz.de/10012714676

Investor Psychology in Capital Markets : Evidence and Policy Implications

Daniel, Kent D. - 2011

We review extensive evidence about how psychological biases affect investor behavior and prices. Systematic mispricing probably causes substantial resource misallocation. We argue that limited attention and overconfidence cause investor credulity about the strategic incentives of informed market...

Persistent link: https://www.econbiz.de/10012715030

The Accrual Anomaly : Risk or Mispricing?

Hirshleifer, David A. - 2010

We document considerable return comovement associated with accruals after controlling for other common factors. An accrual-based factor-mimicking portfolio has a Sharpe ratio of 0.16, higher than that of the market factor or the SMB and HML factors of Fama and French (1993). According to...

Persistent link: https://www.econbiz.de/10012717628

Disclosure to an Audience with Limited Attention

Hirshleifer, David A. - 2008

In our model, informed players decide whether or not to disclose, and observers allocate attention among disclosed signals, and toward reasoning through the implications of a failure to disclose. In equilibrium disclosure is incomplete, and observers are unrealistically optimistic. Nevertheless,...

Persistent link: https://www.econbiz.de/10012727670