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This research aims to examine empirically the overreliance on representativeness heuristic and anchoring-adjustment influences experienced by investors in forecasting future earnings. This research was a laboratory experiment with a design of 2x2 full factorial between subject. The results...
Persistent link: https://www.econbiz.de/10012502444
Traditional finance theory suggests that riskier investments should yield higher returns. Challenging this notion, anecdotal and empirical evidence suggests that highly-incented managers may take on excessive risk, leading to greater losses, while other theoretical research argues that high...
Persistent link: https://www.econbiz.de/10012924858
We study portfolio choice when labor income and dividends are cointegrated. Economically plausible calibrations suggest young investors should take substantial short positions in the stock market. Because of cointegration the young agent's human capital effectively becomes "stock-like." However,...
Persistent link: https://www.econbiz.de/10003597330
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Empirical evidence shows that changes in aggregate labor income and stock market returns exhibit only weak correlation at short horizons. As we document below, however, this correlation increases substantially at longer horizons, which provides at least suggestive evidence that stock returns and...
Persistent link: https://www.econbiz.de/10012467438
This study aims to determine the effect of dividend policy on investment decisions of a sample of individual investors … of firms' dividend policies on individuals' decisions on investing in stocks were elaborated. The findings of the study … share, dividend policies in the previous years, whether they provide dividend, forms of dividend payment and dividend …
Persistent link: https://www.econbiz.de/10012999116
This paper investigates the relationship between demographic changes and the long-run returns of dividend …-fungible, the preference for high dividend-paying stocks by older investors means that the excess returns of high dividend … that, as consistent with the behavioural life-cycle hypothesis, the long-run returns of dividend-yield investment …
Persistent link: https://www.econbiz.de/10013083134
accurate forecasts relative to alternatives, including the traditional dividend yield. This remains true even after excluding …
Persistent link: https://www.econbiz.de/10012973823
Despite at least six empirical studies published since 2000 designed to assess fund managers' REIT selection ability, their skill remains in question. Unlike previous studies, we examine fund holdings and trades of REITs to answer this question. This approach allows us to explicitly account for...
Persistent link: https://www.econbiz.de/10013133013