We conduct two experiments to examine potential causes of the disposition effect. In Experiment 1, we rule out beliefs in mean reversion as a cause of the disposition effect. Although a belief in the mean reversion of stock prices should be independent of whether an investor owns or only follows...

We develop a framework for improving auditor judgment in complex audit tasks. The framework recognizes that high-quality judgment in complex tasks requires that auditors (1) possess the knowledge needed for the task, (2) recognize the need for analytical (versus heuristic) processing, and (3)...

This paper reports the results of an experiment that examines how analyst forecast accuracy (i.e., how close an analyst's forecast is to realized earnings) and forecast boldness (i.e. how far the analyst's forecast is from the consensus forecast) affect the analyst's perceived credibility and...