Mental Accounting, Loss Aversion, and Individual Stock Returns
نویسندگان
چکیده
منابع مشابه
Mental Accounting, Loss Aversion, and Individual Stock Returns
The point of this note is to explain the ideas in the above research paper without using any mathematics or technical jargon (the original paper contains both). The intended reader is someone who is interested in economics and finance but who is not an academic researcher. I welcome your comments on the ideas below, whether you agree with them or not; and also on the write-up itself -for exampl...
متن کاملIndividual Investor Sentiment and Stock Returns
This paper investigates a unique dataset that enables us to determine the aggregate buy and sell volume of individual investors for a large cross-section of NYSE stocks. We find that individuals trade as if they are contrarians, and that the stocks that individuals buy exhibit positive excess returns in the following month. These patterns are consistent with the idea that risk-averse individual...
متن کاملLoss aversion and mental accounting: The favorite-longshot bias in parimutuel betting
In this paper it is shown that the combination of mental accounting and loss aversion can fundamentally changes people’s way of evaluating risky alternatives. The observation is applied in a market setting: Parimutuel betting markets. In parimutuel betting markets it has been found that for horses with lowest odds (favorites), market estimates of winning probabilities are smaller than objective...
متن کاملIndividual Investor Sentiment and Comovement in Small Stock Returns∗
Using data from a major discount brokerage house, we examine the effect of individual investor trading on stock returns. We show that the buy-sell imbalance in individual investors’ trades contains a systematic component that is uncorrelated with overall market movements. Using this common component as a measure of individual investor sentiment, we show that it is weakly correlated with standar...
متن کاملLoss Aversion Motivates Tax Sheltering: Evidence From U.S. Tax Returns
This paper presents evidence that loss aversion affects taxpayers as they file their annual tax returns. I model the decisions of a loss-averse tax filer who may use tax shelters to manipulate the “balance due” exchanged with the IRS. I use this model to derive distinguishing predictions of loss aversion which facilitate its identification and quantification in the field. Under loss framing, th...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: The Journal of Finance
سال: 2001
ISSN: 0022-1082
DOI: 10.1111/0022-1082.00367