I test whether investors' trading decisions are influenced by their preferences for framing
gains and losses. I find that investors are more likely to bundle sales of losers than sales of …

Current financial reporting guidance allows managers flexibility as to whether to
disaggregate income statement items. Such flexibility is problematic if managers prefer to …

When investors fixate on current earnings, they commit a cognitive error and fail to fully
value the information contained in accruals and cash flows. Extending the accrual anomaly …

This paper is concerned with how the psychological biases of investors are reflected in
trading around earnings announcements. We analyze order imbalances (buy orders less …

We examine how investor preferences and beliefs affect trading in relation to past gains and
losses. The probability of selling as a function of profit is V-shaped; at short holding periods …

We study equilibrium firm‐level stock returns in two economies: one in which investors are
loss averse over the fluctuations of their stock portfolio, and another in which they are loss …

When investors sell one asset and quickly buy another (“reinvestment days”), their trades
suggest the original mental account is not closed, but is instead rolled into the new asset …

This paper investigates the effects of preferences on judgments in an investing context,
where investors should be motivated to interpret information objectively, yet have clear …

Human judgments are systematically affected by various biases and distortions. The main
goal of our study is to analyze the effects of five well-documented behavioral biases …

We analyze brokerage data and an experiment to test a cognitive dissonance based theory
of trading: investors avoid realizing losses because they dislike admitting that past …