Purpose – This article aims to investigate whether intermediaries reduce loss aversion in the context of a high‐involvement non‐frequently purchased hedonic product (tourism packages). Design/methodology/approach – The study incorporates the reference‐dependent model into a multinomial...

Purpose This paper applies the theory of loss aversion to public budgeting. It seeks to understand how loss aversion affects recommended budget amounts in two scenarios, one with explicit and one with implied risk levels. It also furthers the understanding of how the personality trait of risk...

Purpose – The paper attempts to answer “Will the shift from the locus of self to locus of others impact the magnitude of loss aversion?” and “Will different prices affect the self‐other asymmetry in choice?”. Design/methodology/approach – The design is a two ( locus : self vs...

Purpose – The purpose of this paper is to investigate and test for changes in investor risk aversion and the stochastic discount factor (SDF) using options data on the West Texas Intermediate crude oil futures contract during the 2007-2011 period. Design/methodology/approach – Risk aversion...

Purpose – The purpose of this paper is to investigate whether the gender composition of a fund management team influences investment decision-making behavior. Specifically, we focus on how portfolio choice is affected by team risk aversion and loss aversion. Design/methodology/approach –...

The Behavioural Finance contests the modern financial theory statements, specially the rationality conception of the market as well as the agent behaviour. For the Behavioural Finance, the human being is susceptible to make mistakes and often acts under “irrational” and passional impulses....

Purpose – The purpose of this paper is to investigate whether mutual fund investors can make effective cash flow timing decisions and examine the sensitivity of these decisions to past fund performance using cash flow data at the individual fund level. Design/methodology/approach – This...