This paper studies the wealth and pricing implications of loss aversion in the presence of arbitrageurs with Epstein …-Zin preferences. Loss aversion affects an investor's survival prospects mainly through its effect on the investor's portfolio holdings …. Loss-averse investors will be driven out of the market and do not affect long-run prices if their portfolio positions are …

subjective ratings behave relative to expected portfolio returns and experienced portfolio returns. Loss aversion is strong for … evaluating experienced returns, the effect diminishes by more than half and is well below commonly found loss aversion … coefficients. This suggests that a large part of investors' financial loss aversion results from an affective forecasting error …

In this paper we study the effects that loss contracts - prepayments that can be clawbacked later - have on group … an isomorphic loss contract. Our results show that loss contracts reduce the minimum efforts of groups and worsen …

In thi s paper we examine capital income taxation of a reference dependent sufficiently loss averse investor in a two … period portfolio choice model under full loss offset provisions. Capital income taxation with loss offset provisions has been … different types of loss averse investors in terms of their ambition. We consider the less ambitious investors to be the ones …

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 …

Narrow bracketing in combination with loss aversion has been shown to reduce individual risk-taking. This is known as … myopic loss aversion (MLA) and has been corroborated by many studies. Recent evidence has contested this notion indicating …

examine how human beings respond to major financial losses. University ethics boards would not allow this kind of huge-loss …. Participants lose any cash placed on a wrong answer. We find evidence of risk reduction after people suffer a loss in the previous … decision round. A prior financial loss of £10,000 is estimated to increase the propensity to fully diversify by 6 percentage …

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 …

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 …