Loss aversion has been shown to be an important driver of people’s investment decisions. Encouraged by regulators …, financial institutions are in search of ways to incorporate clients’ loss aversion in their risk classifications. The most … critical obstacle appears to be the lack of a valid measurement method for loss aversion that can be straightforwardly …

Myopic loss aversion (MLA) has been proposed as an explanation for the equity premium puzzle, and a number of …

-portfolio losses in currency investments we demonstrate that this dynamic loss aversion spans multiple frames of reference. Losses are … not compartmentalized; rather a loss in one currency may impact trading in another. We also show that while the impact of … a loss on subsequent trading decisions does linger, the affect declines sharply after a losing position is closed …

financial decisionmaking. In this paper we present a simple model based on loss aversion that can accommodatefor all of these …

This research examines capital income taxation for a loss averse investor under some acceptable in the literature … the attractive full loss offset provisions. However, risk taking can be stimulated if the investor interprets part of the … tax as a loss instead as a reduced gain. Then investor becomes risk seeking and moves away from the discomfort zone of …

allocation. Loss aversion per se is a relevant variable in explaining financial risk-taking. …

Purpose - The current study aims to investigate the impacts of two behavioral biases, namely, loss aversion and … overconfidence on the performance of US companies. First, the impact of loss aversion on the economic performance of companies was … study. Findings - It was documented that the loss-aversion bias negatively affects the economic performance of companies and …

Using detailed mutual fund holdings in the US market, we estimate active mutual fund managers’ loss aversion as a … function of both funds’ past performance and asset allocations. We document a substantial variation in loss aversion over time …. We further find managers' loss aversion is higher when past fund flows were high and lower when past fund flows were …