ALTI, AYDOĞAN; TETLOCK, PAUL C. - In: Journal of Finance 69 (2014) 1, pp. 325-361
type="main" <title type="main">ABSTRACT</title> <p>We structurally estimate a model in which agents’ information processing biases can cause predictability in firms’ asset returns and investment inefficiencies. We generalize the neoclassical investment model by allowing for two biases—overconfidence and...</p>