Journal ArticleDOI
Explaining cryptocurrency returns: A prospect theory perspective
TLDR
In this paper , the authors investigate prospect theory's ability to explain cryptocurrency returns using data concerning 1,573 cryptocurrencies over the period 2014-2020 and find that cryptocurrencies that are more attractive from a prospect theory perspective earn lower (higher) future returns, suggesting that they tend to be overpriced (underpriced).About:
This article is published in Journal of International Financial Markets, Institutions and Money.The article was published on 2022-07-01. It has received 3 citations till now. The article focuses on the topics: Cryptocurrency & Perspective (graphical).read more
Citations
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Journal ArticleDOI
Can salience theory explain investor behaviour? Real-world evidence from the cryptocurrency market
TL;DR: In this paper , the salience theory was used to explain investor behavior in the cryptocurrency market and found that cryptocurrencies that are more (less) attractive to "salient thinkers" earn lower (higher) future returns, indicating that they tend to be overpriced (underpriced).
Proceedings ArticleDOI
Simple Fuzzy Decision Support Model for Evaluating the Cryptocurrency’s Performance
TL;DR: In this article , a decision support model (DSM) based on fuzzy logic was constructed to observe the cryptocurrency's performance, and the model could irreversibly expose that Bitcoin has the best performance.
Journal ArticleDOI
The Prospect Theory and The Stock Market
TL;DR: Wang et al. as mentioned in this paper investigated the important principle of behavioral economics , prospect theory and applied prospect theory to stock market and found that prospect theory can conduct investors gain more profit because of stock reverse transaction strategy.
References
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Journal ArticleDOI
Prospect theory: analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
Journal ArticleDOI
Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.
Manuel Arellano,Stephen Bond +1 more
TL;DR: In this article, the generalized method of moments (GMM) estimator optimally exploits all the linear moment restrictions that follow from the assumption of no serial correlation in the errors, in an equation which contains individual effects, lagged dependent variables and no strictly exogenous variables.
Journal ArticleDOI
Advances in prospect theory: cumulative representation of uncertainty
Amos Tversky,Daniel Kahneman +1 more
TL;DR: Cumulative prospect theory as discussed by the authors applies to uncertain as well as to risky prospects with any number of outcomes, and it allows different weighting functions for gains and for losses, and two principles, diminishing sensitivity and loss aversion, are invoked to explain the characteristic curvature of the value function and the weighting function.
Journal ArticleDOI
Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches
TL;DR: In this article, the authors examine the different methods used in the literature and explain when the different approaches yield the same (and correct) standard errors and when they diverge, and give researchers guidance for their use.
Journal ArticleDOI
Illiquidity and stock returns: cross-section and time-series effects $
TL;DR: In this article, the authors show that expected market illiquidity positively affects ex ante stock excess return, suggesting that expected stock ex ante excess return partly represents an illiquid price premium, which complements the cross-sectional positive return-illiquidity relationship.