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Myopic Loss Aversion, Personality, and Gender

Journal of Behavioral Finance, 2019
AbstractInvestor propensity to exhibit myopic loss aversion (MLA) varies. The authors’ analysis, which follows and extends the experimental design of Gneezy and Potters [1997] and Haigh and List [2...
Robert B Durand
exaly   +2 more sources

A systematic test for myopic loss aversion theory

Review of Behavioral Finance, 2018
Purpose Myopic loss aversion, or the combination of loss aversion and frequent portfolio evaluation, has been argued to possibly be one of the factors behind the equity premium puzzle. The purpose of this paper is to offer an alternative systematic test that looks at the relationship between inflation and equity premium to test for this theory ...
Raone Botteon Costa
exaly   +2 more sources

An experimental analysis of myopic loss aversion

Research in Experimental Economics, 2013
Abstract Purpose Previous studies showed mixed results as to the cause of myopic loss aversion (MLA). This paper reexamines the main driver of MLA, considering two factors from previous studies and an additional factor.
Tomoki Kitamura
exaly   +2 more sources

Myopic loss aversion, reference point, and money illusion

Quantitative Finance, 2014
We use the portfolio selection model presented in He and Zhou [Manage. Sci., 2011, 57, 315–331] and the NYSE equity and US treasury bond returns for the period 1926–1990 to revisit Benartzi and Thaler’s myopic loss aversion theory. Through an extensive empirical study, we find that in addition to the agent’s loss aversion and evaluation period, his ...
Xue Dong He, Xun Yu Zhou
exaly   +2 more sources

Do financial advisors exhibit myopic loss aversion?

Financial Markets and Portfolio Management, 2009
Myopic loss aversion (MLA) has been proposed as an explanation for the equity premium puzzle, and a number of experiments on students indicate that people do exhibit MLA. However, many people do not rely on their own judgment when making investment decisions, but obtain help from financial investment advisors on how to allocate their wealth.
Ola Kvaløy
exaly   +2 more sources

Myopic Loss Aversion in Brazilian Open Retirement Funds

Latin American Business Review, 2008
ABSTRACT This paper analyzes the relationship between withdrawals from Brazilian open retirement funds, portfolio composition (fixed income or equity) and frequency of statement sending (monthly, quarterly, semiannually or annually). Our results indicate that equity retirement plans present a lower withdrawal index when compared to that of fixed income
Eduardo F. L. de Melo   +1 more
exaly   +2 more sources

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