The aim of this paper is to investigate the degree of susceptibility to behavioral biases (the certainty effect, the sunk cost fallacy, and mental accounting) among people of various levels of expertise in market investments and to determine whether this susceptibility is correlated with certain...

This study aims to connect the two strands of literature, i.e. behavioral corporate finance and agent-based macroeconomics to assess the impact of managerial overconfidence both at the micro and at the macro level. More specifically, we build a macroeconomic Agent-Based Model (ABM) calibrated...

This paper focuses on tendencies and determinants of corporate long-term capital policy. The study covered nearly 2000 firms during the period 1988-2002 in four European countries, namely: France, Germany, Great Britain and Poland. It answers the two main questions. First, what tendencies can be...

This paper deals with market reaction to announcements of quarterly earnings. We observe if information content of quarterly reports is accordingly reflected in stock prices, as theoretically implied by the Efficient Market Hypothesis. We focus on the small emerging market in Poland, and search...

The paper presents the Generalized Behavioral Model (GBM) that describes how asset prices may be influenced by various behavioral heuristics and how the prices may deviate from fundamental values due to investors' irrational behavior. The model distinguishes three behavioral variables that are...

This paper confronts the main foundations of the neoclassical theory of the capital market and asset pricing with allegations of behavioral finance. Cornerstones of the traditional theory are discussed in the first section. It is followed by a brief presentation of the behavioral approach....

The disposition effect is known as the reluctance of investors to realize losses and their eagerness to realize gains. The aim of the present research was to examine the impact of the disposition effect at the aggregate (market) level. In order to limit the number of factors affecting the...