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The efficient-market hypothesis (EMH) is one of the most important economic and financial hypotheses that have been tested over the past century. Due to many abnormal phenomena and conflicting evidence, otherwise known as anomalies against EMH, some academics have questioned whether EMH is...
Persistent link: https://www.econbiz.de/10013199649
In recent years the topics of illegal activities such as corruption or tax evasion have attracted a great deal of attention. However, there is still a lack of substantial empirical evidence about the determinants of compliance. The aim of this paper is to investigate empirically whether women...
Persistent link: https://www.econbiz.de/10012168245
overconfidence. We find experimental evidence that individuals update beliefs about their own investment ability based on realized … disposition effect leads to overconfidence and examine model implications for investors' trading behavior and expected profit. …
Persistent link: https://www.econbiz.de/10014290267
The disposition effect is a well-established phenomenon which describes the behavior of investors that are more willing to sell capital gains than capital losses. In this article we present experimental evidence on a situation where an investor decides on behalf of another person. In our...
Persistent link: https://www.econbiz.de/10011771372
: overconfidence and uncertainty about performance. Since task-based goal setting is low-cost, scaleable and logistically simple, we …
Persistent link: https://www.econbiz.de/10011584598
We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...
Persistent link: https://www.econbiz.de/10011584855
, loss aversion, regret aversion, representativeness and overconfidence. Design/methodology/approach - The relationship is … annual income earned by the investor. The test found that for the significant biases except the overconfidence bias, the … other hand, with respect to the overconfidence bias, the investors with higher annual income were prone to exhibit …
Persistent link: https://www.econbiz.de/10013192152
overconfidence on the performance of US companies. First, the impact of loss aversion on the economic performance of companies was … assessed. Second, the impact of overconfidence on market performance was discussed. Design/methodology/approach - This study … this is achieved for both sectors. In contrast, the findings suggest that overconfidence positively affects market …
Persistent link: https://www.econbiz.de/10013192189
The aim of this paper is to explore the determinants of firms' financial policies according to the manager's psychological characteristics. More specifically, it examines the links between emotional intelligence, decision biases and the effectiveness of firms' financial policies. The article...
Persistent link: https://www.econbiz.de/10010436081
We analyze the trading activity in an Internet chat room with approximately 1,300 participants. Traders make posts in real time about their activities. We find these traders are more skilled than retail investors analyzed in other studies. 55% make profits after transaction costs, and they earn...
Persistent link: https://www.econbiz.de/10010277178