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Two relevant areas in the behaviorist literature are prospect theory and overconfidence. Many tests are available to …, overplacement and overprecision as measures of overconfidence. Those tests are suitable to deal with single manifestations but often … and overconfidence. We conduct an experimental research with 126 students to validate the tests, revealing they are …
Persistent link: https://www.econbiz.de/10011111828
Behavioral finance studies the application of psychology to finance, with a focus on individual-level cognitive biases. I describe here the sources of judgment and decision biases, how they affect trading and market prices, the role of arbitrage and flows of wealth between more rational and less...
Persistent link: https://www.econbiz.de/10011111870
measure overconfidence , overconfidence will aggravate this distortion . …
Persistent link: https://www.econbiz.de/10011112916
This paper tests the alternative hypotheses of investment selection skills versus overconfidence of equity mutual funds … overconfidence when the market is in turmoil, suggesting an investment strategy of shifting from concentrated funds to more broadly …
Persistent link: https://www.econbiz.de/10011116379
markets. Consistent with Thaler and Johnson's (1990) house money effect and the overconfidence hypothesis proposed by Gervais …
Persistent link: https://www.econbiz.de/10011116409
We investigate the theoretically proposed link between judgmental overconfidence and trading activity. In addition to … the relevant bias in the theoretical overconfidence literature. We relate the obtained overconfidence measures to trading …
Persistent link: https://www.econbiz.de/10011116877
We investigate whether overconfidence is affected by superstitious beliefs and whether the effect is heterogeneous … overconfidence is positively affected by being assigned to a lucky number. Interestingly, males and females react differently …: females’ overconfidence tends to be negatively affected when assigned to unlucky numbers, while they are not affected by being …
Persistent link: https://www.econbiz.de/10011117223
Research suggests that boards of directors select CEOs using signals of ability. However, little is known about how boards determine the combination of attributes that constitute a ‘good’ CEO, especially attributes without an ex ante clear impact on managerial quality, such as CEO optimism....
Persistent link: https://www.econbiz.de/10011117546
overconfidence and overentry into competition. In a broader context, the results provide an explanation for the overconfidence of …
Persistent link: https://www.econbiz.de/10011163925
overconfidence, are discussed. We argue that our findings can be transferred to behavior after success or failure in business …
Persistent link: https://www.econbiz.de/10011167268