6/22/00: web retrieval--abstract only--KathyUniversity of WashingtonSchool of Business AdministrationJournal of Financial and Quantitative Analysishttp://depts.washington.edu/jfqa/Vol. 35, No. 2, June 2000Behavioral Portfolio TheoryHersh Shefrin and Meir StatmanAbstract:We develop a positive...

We know from empirical studies that stocks of small companies with high book-to-market ratios have provided higher returns than stocks of large companies with low book-to-market ratios. But do senior executives, outside directors and financial analysts believe that? We show that senior...

More than twenty years ago, Meir Statman and I coined the term disposition effect to describe the predisposition of investors to sell their winners too early and to ride their losers too long. We identified a series of psychological phenomena that we believed explained the disposition effect,...

There was unfinished business to address in the version of the planner-doer model developed in Thaler and Shefrin (1981). The unfinished business involved identifying and modeling the crucial roles played by temptation and mental accounting in pensions and savings behavior. The present paper has...

Current measures of financial literacy focus on knowledge, and the literature on financial literacy has described important findings about the extent and impact of limited financial knowledge across the population. This paper discusses issues associated with broadening the scope of the financial...

This paper discusses the impact of a series of psychological phenomena on the U.S. response to COVID-19, focusing on forecasts of cases and deaths. The specific phenomena comprise unrealistic optimism bias, overconfidence, anchoring and adjustment, representativeness, motivated reasoning, and...

On the surface, cryptocurrencies share important features in common with high sentiment beta stocks. Baker and Wurgler (2007) identify high sentiment betas with small startup firms that have great growth potential. This paper investigates the degree to which, during the period July 18, 2010 to...

Because of limits to arbitrage, it is reasonable for sell-side analysts' target prices to deviate from their corresponding estimates of future fundamental value. Although this inequality does not imply that sell-side analysts should provide biased estimates of fundamental value, many do. A key...

This online appendix extends the empirical analysis in the main paper, and provides diagnostic tests, robustness checks and additional regression results.The paper "Estimating Sentiment, Risk Aversion, and Time Preference from Behavioral Pricing Kernel Theory" to which these Appendices apply is...

This paper investigates how the combination of preferences and biases impact the risk-value profile of acquiring firms. We find strong evidence that prior losses impact acquisition risk as firms with negative prior returns are more prone to become acquirers and make value destructive...