SE Bonner, SM Clor-Proell… - The Accounting …, 2014 - publications.aaahq.org
Current financial reporting guidance allows managers flexibility as to whether to disaggregate income statement items. Such flexibility is problematic if managers prefer to …
T Houge, T Loughran - The Journal of Psychology and Financial …, 2000 - Taylor & Francis
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 …
L Frieder - Available at SSRN 479983, 2003 - papers.ssrn.com
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 …
N Barberis, M Huang - the Journal of Finance, 2001 - Wiley Online Library
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 …
A Kudryavtsev, G Cohen, S Hon-Snir - Contemporary economics, 2013 - papers.ssrn.com
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 …