Journal ArticleDOI
Investor Psychology and Security Market Under- and Overreactions
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This article is published in Cfa Digest.The article was published on 1999-05-01. It has received 1324 citations till now.read more
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Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment
Brad M. Barber,Terrance Odean +1 more
TL;DR: For example, this paper found that men trade 45 percent more than women and earn annual risk-adjusted net returns that are 1.4 percent less than those earned by women, while women perform worse than men.
Journal ArticleDOI
Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors
Brad M. Barber,Terrance Odean +1 more
TL;DR: In this paper, the authors argue that overconfidence can explain high trading levels and the resulting poor performance of individual investors, and that trading is hazardous to the wealth of individuals who hold common stocks directly.
Journal ArticleDOI
A model of investor sentiment1We are grateful to the NSF for financial support, and to Oliver Blanchard, Alon Brav, John Campbell (a referee), John Cochrane, Edward Glaeser, J.B. Heaton, Danny Kahneman, David Laibson, Owen Lamont, Drazen Prelec, Jay Ritter (a referee), Ken Singleton, Dick Thaler, an anonymous referee, and the editor, Bill Schwert, for comments.1
Posted Content
Bad News Travels Slowly: Size, Analyst Coverage and the Profitability of Momentum Strategies
TL;DR: In this paper, the authors test the gradual information diffusion model of Hong and Stein (1997) and establish three key results: once one moves past the very smallest stocks (where thin market-making capacity appears to be an issue), the profitability of momentum strategies declines sharply with firm size.
Journal ArticleDOI
Alternative factor specifications, security characteristics, and the cross-section of expected stock returns1
TL;DR: In this article, the authors examined the relation between stock returns, measures of risk, and several non-risk security characteristics, including the book-to-market ratio, firm size, the stock price, the dividend yield, and lagged returns.
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Posted Content
Bad News Travels Slowly: Size, Analyst Coverage and the Profitability of Momentum Strategies
TL;DR: In this paper, the authors test the gradual information diffusion model of Hong and Stein (1997) and establish three key results: once one moves past the very smallest stocks (where thin market-making capacity appears to be an issue), the profitability of momentum strategies declines sharply with firm size.
Journal ArticleDOI
Alternative factor specifications, security characteristics, and the cross-section of expected stock returns1
TL;DR: In this article, the authors examined the relation between stock returns, measures of risk, and several non-risk security characteristics, including the book-to-market ratio, firm size, the stock price, the dividend yield, and lagged returns.
Journal ArticleDOI
Investor Inattention and Friday Earnings Announcements
TL;DR: In this paper, the authors compare the response to earnings announcements on Friday, when investor inattention is more likely, to the response on other weekdays, and support explanations of post-earnings announcement drift based on underreaction to information caused by limited attention.
Journal ArticleDOI
Limited Attention, Information Disclosure, and Financial Reporting
TL;DR: In this article, the authors model firms' choices between alternative means of presenting information and the effects of different presentations on market prices when investors have limited attention and processing power, and derive empirical implications relating pro forma adjustments, option compensation, the growth, persistence, and informativeness of earnings, short run managerial incentives, and other firm characteristics to stock price reactions, misvaluation, long run abnormal returns, and corporate decisions.
Posted Content
CEO Overconfidence and Corporate Investment
Ulrike Malmendier,Geoffrey Tate +1 more
TL;DR: In this paper, the authors argue that managerial overconfidence can account for corporate investment distortions and find that investment of overconfident CEOs is significantly more responsive to cash flow, particularly in equity-dependent firms.