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Fan, Steve Z. - 2017

Stock market anomalies representing the predictability of cross-sectional stock returns are one of most controversial topics in financial economic research. This chapter reviews several well-documented and pervasive anomalies in the literature, including investment-related anomalies, value...

Persistent link: https://www.econbiz.de/10012954410

Chapter 20 : Traditional Asset Allocation Securities: Stocks, Bonds, Real Estate, and Cash

Milliken, Christopher - 2017

, mental accounting, and overconfidence. Each behavioral bias discussion contains examples, warning signs, and steps to correct …

Persistent link: https://www.econbiz.de/10012954547

Stock Price Synchronicity, Cognitive Biases, and Momentum

Chen, Chen; Doukas, John A. - 2021

The momentum anomaly is widely attributed to investor cognitive biases, but the trigger of cognitive biases is largely unexplored. In this study, inspired by psychology studies linking cognitive biases to the noisiness of information, we examine whether momentum returns are associated with high...

Persistent link: https://www.econbiz.de/10013251937

The favorite-longshot bias and the impact of experience

Feess, Eberhard; Müller, Helge; Schumacher, Christoph - In: Business research 7 (2014) 2, pp. 217-234

With a unique data set from New Zealand which allows us to assign each bet to individual bettors, we analyze the impact of experience on behavior and success in non-parimutuel (fixed odds) sports betting markets. We find that experienced bettors bet more on favorites than inexperienced bettors...

Persistent link: https://www.econbiz.de/10010414257

The reflection of crowd behaviour in Indian bourses

Ganesh, R.; Naresh, G.; Thiyagarajan, S. - In: International journal of behavioural accounting and finance 6 (2017) 2, pp. 93-106

Persistent link: https://www.econbiz.de/10012250995

Measuring biases in expectation formation

Peters, Florian; Kucinskas, Simas - 2018

We develop a general framework for measuring biases in expectation formation. The method is based on the insight that biases can be inferred from the response of forecast errors to past news. Empirically, biases are measured by flexibly estimating the impulse response function of forecast...

Persistent link: https://www.econbiz.de/10011869992

Stock price synchronicity, cognitive biases, and momentum

Chen, Chen; Doukas, John A. - In: European financial management : the journal of the … 28 (2022) 1, pp. 59-112

Persistent link: https://www.econbiz.de/10012795703

Further Biases in Using Dollar-Weighted Returns to Infer Investment Timing Effects

Hayley, Simon - 2019

method has previously been derived for separating this bias from genuine timing effects. This paper demonstrates that using … in-sample mean returns for this decomposition causes an additional bias which again misleadingly suggests bad investor … timing. This paper quantifies this bias, allowing unbiased investor timing effects to be estimated. A proper understanding of …

Persistent link: https://www.econbiz.de/10012899933

Graphical Representation of Investment Returns and Biased Risk Taking

Bachmann, Kremena - 2018

This paper compares different graphical representation of investment returns in terms of their potential to induce a wrong perception of the risk-reward potential of an investment. Additionally, the paper analyzes which representation format is most likely to encourage investment risk taking...

Persistent link: https://www.econbiz.de/10012916341

Measuring Investors' Historical Returns : Hindsight Bias in Dollar-Weighted Returns

Hayley, Simon - 2017

hindsight bias. This paper also derives a method which separates these two effects. The results show that the great majority of … the return differential for mainstream US equities has been due to hindsight bias, and very little due to bad investor …

Persistent link: https://www.econbiz.de/10012976323