When are gains and losses accessible? The impact of affect and experienced gains and losses on framing effects

2006 ◽  
Author(s):  
Michael J. Liersch ◽  
Christine R. Harris
Keyword(s):  
Framing Effects ◽  
Gains And Losses ◽  
The Impact

scholarly journals How Goals Erase Framing Effects in Risky Decision Making

2021 ◽  
Author(s):  
Laura Marbacher ◽  
Jana Bianca Jarecki ◽  
Jörg Rieskamp
Keyword(s):  
Risk Preferences ◽  
Framing Effects ◽  
Risky Decision ◽  
Decisions Under Risk ◽  
Dynamic Version ◽  
Goal Distance ◽  
Stock Investments ◽  
Gains And Losses ◽  
The Impact ◽  
Risky Decisions

Evidence has shown that goals systematically change risk preferences in repeated decisions under risk. For instance, decision makers could aim to reach goals in a limited time, such as “making at least $1000 with ten stock investments within a year.” We test whether goal-based risky decisions differ when facing gains as compared to losses. More specifically, we examine the impact of outcome framing (gains vs. losses) and state framing (positive vs. negative resource states) on goal-based risky decisions. Our results (N=100) reveal no framing effects; instead, we find a consistently strong effect of the goal on risk preferences independent of framing. Computational modeling showed that a dynamic version of prospect theory, with a goal-dependent reference point, described 87% of participants best. This model treats outcomes as gains and losses depending on the state-goal distance. Our results show how goals can erase standard framing effects observed in risky choices without goals.

Comprehensive Income: which potential effects on firms' performance evaluation and users' decision process?

2016 ◽  
pp. 55-94
Author(s):  
Pier Luigi Marchini ◽  
Carlotta D'Este
Keyword(s):  
Performance Evaluation ◽  
Decision Process ◽  
Financial Analysts ◽  
Listed Companies ◽  
Financial Statement ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Gains And Losses ◽  
The Impact

The reporting of comprehensive income is becoming increasingly important. After the introduction of Other Comprehensive Income (OCI) reporting, as required by the 2007 IAS 1-revised, the IASB is currently seeking inputs from investors on the usefulness of unrealized gains and losses and on the role of comprehensive income. This circumstance is of particular relevance in code law countries, as local pre-IFRS accounting models influence financial statement preparers and users. This study aims at investigating the role played by unrealized gains and losses reporting on users' decision process, by examining the impact of OCI on the Italian listed companies RoE ratio and by surveying a sample of financial analysts, also content analysing their formal reports. The results show that the reporting of comprehensive income does not affect the financial statement users' decision process, although it statistically affects Italian listed entities' performance.

scholarly journals Fair Value Accounting and Earnings Management Using LLP and Realized Gains and Losses: Study in Banking Industry Listed on Indonesia Stock Exchange

2018 ◽  
Vol 14 (2) ◽  
pp. 126-137
Author(s):  
Ice Maria Ulfa ◽  
Bambang Subroto ◽  
Zaki Baridwan
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Banking Industry ◽  
Stock Exchange ◽  
Fair Value ◽  
Fair Value Accounting ◽  
Loan Loss ◽  
Trade Off ◽  
Gains And Losses ◽  
The Impact

Abstract: Fair Value Accounting and Earnings Management Using LLP and Realized Gains and Losses: Study in Banking Industry Listed on Indonesia Stock Exchange. This study examines whether earnings management can be limited by the implementation of fair value accounting in banking industry. The main contribution of this study is  providing provide empirical evidence about the impact of fair value accounting on earnings management in Indonesia. Earnings management is proxied by loan loss provision (LLP), the realized of gains and losses, and the trade-off between realized gains and losses and LLP following Bratten et al (2013). The study provides empirical evidence that earnings management is still performed by banks, by using LLP, realized gains and losses and also occurs trade-off between LLP and realized gains and losses as means to perform earnings management in accordance with the needs of management. If banks are exposed to fair value accounting, managers will have more flexibility in reporting banks’ financial performance to present a desired earning, by  providing them with additional earning managements tools. These findings can be informative for policymakers, banking practitioners, and academics.  Keywords: earnings management, fair value accounting, LLP, realized gains and losses, trade-off LLP and realized gains and losses.Abstrak: Akuntansi Nilai Wajar dan Manajemen Laba menggunakan CKPN dan Realized Gains and Losses: Studi pada Industri Perbankan yang terdaftar di Bursa Efek Indonesia. Studi ini bertujuan untuk meneliti apakah manajemen laba dapat dibatasi oleh penerapan akuntansi nilai wajar dalam industri perbankan. Kontribusi dari penelitian ini adalah untuk memberikan bukti empiris tentang dampak penerapan akuntansi nilai wajar pada manajemen laba di Indonesia. Manajemen laba diproksikan oleh cadangan kerugian penurunan nilai (CKPN), realized of gains and losses, dan trade-off antara realized of gains and losses dan CKPN mengikuti model penelitian Bratten et al (2013). Studi ini memberikan bukti empiris bahwa manajemen laba masih dilakukan oleh bank menggunakan CKPN, realized of gains and losses dan juga terjadi trade-off antara CKPN dan realized of gains and losses sebagai sarana manajemen laba sesuai dengan kebutuhan manajemen. Konsekuensi dari paparan bank terhadap akuntansi nilai wajar dapat meningkatkan fleksibilitas manajer dalam melaporkan penghasilan yang diinginkan dengan memberikan mereka alat manajemen laba. Temuan-temuan tersebut dapat bersifat informatif bagi pembuat kebijakan, anggota industri perbankan, dan akademisi. Kata kunci: manajemen laba, akuntansi nilai wajar, CKPN, realized gains and losses, trade-off CKPN dan realized gains and losses.

A Genetic Polymorphism of the Human Dopamine Transporter Determines the Impact of Sleep Deprivation on Brain Responses to Rewards and Punishments

2016 ◽  
Vol 28 (6) ◽  
pp. 803-810 ◽  
Author(s):  
Stephanie M. Greer ◽  
Andrea N. Goldstein ◽  
Brian Knutson ◽  
Matthew P. Walker
Keyword(s):  
Genetic Polymorphism ◽  
Sleep Deprivation ◽  
Dopamine Transporter ◽  
Sleep Loss ◽  
Functional Polymorphisms ◽  
Motivated Behavior ◽  
Brain Responses ◽  
Lack Of Sleep ◽  
Gains And Losses ◽  
The Impact

Despite an emerging link between alterations in motivated behavior and a lack of sleep, the impact of sleep deprivation on human brain mechanisms of reward and punishment remain largely unknown, as does the role of trait dopamine activity in modulating such effects in the mesolimbic system. Combining fMRI with an established incentive paradigm and individual genotyping, here, we test the hypothesis that trait differences in the human dopamine transporter (DAT) gene—associated with altered synaptic dopamine signalling—govern the impact of sleep deprivation on neural sensitivity to impending monetary gains and losses. Consistent with this framework, markedly different striatal reward responses were observed following sleep loss depending on the DAT functional polymorphisms. Only participants carrying a copy of the nine-repeat DAT allele—linked to higher phasic dopamine activity—expressed amplified striatal response during anticipation of monetary gain following sleep deprivation. Moreover, participants homozygous for the ten-repeat DAT allele—linked to lower phasic dopamine activity—selectively demonstrated an increase in sensitivity to monetary loss within anterior insula following sleep loss. Together, these data reveal a mechanistic dependency on human of trait dopaminergic function in determining the interaction between sleep deprivation and neural processing of rewards and punishments. Such findings have clinical implications in disorders where the DAT genetic polymorphism presents a known risk factor with comorbid sleep disruption, including attention hyperactive deficit disorder and substance abuse.

Living in the past: The impact of victimization memory on threat perceptions

2017 ◽  
Vol 11 (4) ◽  
pp. 405-421 ◽  
Author(s):  
Ainius Lašas ◽  
Rocio Garcia-Retamero ◽  
Vaida Jankauskaitė ◽  
Vitalija Simonaitytė
Keyword(s):  
Framing Effects ◽  
Intergroup Conflict ◽  
Threat Perception ◽  
Threat Perceptions ◽  
The Past ◽  
Power Asymmetries ◽  
The Impact

Threat perception is a key issue defining intergroup conflict dynamics. To date, it has been linked with power asymmetries and value similarities between groups. This article examines the role of victimization memory in threat construction. The results of an experiment converge to suggest that personal and institutional victimization memories are robust predictors of the levels of threat perception. They act as primary references in the assessment of threat and suppress framing effects. The findings have significant implications for the theory of threat perception.

scholarly journals No group differences in Traditional Economics Measures of loss aversion and framing effects in bipolar I disorder

PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0258360
Author(s):  
Zachary Anderson ◽  
Kim Fairley ◽  
Cynthia M. Villanueva ◽  
R. McKell Carter ◽  
June Gruber
Keyword(s):  
Decision Making ◽  
Behavioral Economics ◽  
Loss Aversion ◽  
Framing Effects ◽  
Group Differences ◽  
Future Research ◽  
Bipolar I Disorder ◽  
Decision Making Processes ◽  
Gains And Losses ◽  
Survey Approach

Bipolar disorder (BD) is associated with impaired decision making, yet few studies have adopted paradigms from behavioral economics to decompose which, if any, aspects of decision making may be impacted. This may be particularly relevant for decision-making processes relevant to known difficulties with emotive dysfunction and corresponding reward dysregulation in BD. Participants with bipolar I disorder (BD; n = 44) and non-psychiatric healthy controls (CTL; n = 28) completed three well-validated behavioral economics decision making tasks via a remote-based survey, including loss aversion and framing effects, that examined sensitivity to probabilities and potential gains and losses in monetary and non-monetary domains. Consistent with past work, we found evidence of moderate loss aversion and framing effects across all participants. No group differences were found in any of the measures of loss aversion or framing effects. We report no group differences between bipolar and non-psychiatric groups with respect to loss aversion and framing effects using a remote-based survey approach. These results provide a framework future studies to explore similar tasks in clinical populations and suggest the context and degree to which decision making is altered in BD may be rooted in a more complex cognitive mechanism that warrants future research.

scholarly journals Less Than I Expected and oh so True? On the Interplay Between Expectations and Framing Effects in Judgments of Truth

2019 ◽  
Vol 38 (5-6) ◽  
pp. 735-755
Author(s):  
Mariela E. Jaffé ◽  
Rainer Greifeneder
Keyword(s):  
Social Psychology ◽  
Framing Effects ◽  
Negativity Bias ◽  
The Impact

This article investigates the negativity bias in truth judgments, which holds that negatively (vs. positively) framed statements are more likely to be judged true. Throughout four studies we find that expectations moderate the negativity bias. In particular, Study 1 failed to replicate the negativity bias with standard items. In Study 2 we investigated individuals’ expectations regarding the statements. When systematically adjusting the percentages in negatively framed statements to be lower than expected, a negativity bias occurred in Study 3. Building on this knowledge in Study 4, we systematically decreased and increased percentages in both framing conditions, investigating the impact of under- versus overestimation. While expectations had no consistent effects for positive frames, overestimation (vs. underestimation) led to a higher likelihood of perceived truth in the negative framing condition. Results are discussed in context of current research on language and social psychology as well as post-truth politics.

The Impact of Social Movements on Policy Outcomes in Partly Free Democracies: Evidence from the “Citizens for Macedonia” Struggles in a Captured Macedonian State

2020 ◽  
pp. 088832541989799
Author(s):  
Ivan Stefanovski
Keyword(s):  
Active Role ◽  
International Community ◽  
Policy Outcomes ◽  
Southeast Europe ◽  
Protection Of Human Rights ◽  
The Republic ◽  
Gains And Losses ◽  
International Statebuilding ◽  
The Impact

This article belongs to a forthcoming special cluster, “Contention Politics and International Statebuilding in Southeast Europe” guest-edited by Nemanja Džuverovic, Julia Rone and Tom Junes. This article looks at the impact of one of the recent waves of mobilization in the Republic of Macedonia, the “Citizens for Macedonia” platform, over policy outcomes that originally derived from the movement actor. Furthermore, the text highlights the crucial role of the international community in shaping and implementing the policy outcomes, playing the role of international statebuilders in the process of reintroducing of democracy in the captured Macedonian state. The theoretical framework and the literature review present an attempt to bridge contemporary works on social movement studies with those on democratization and international state building. A lot of emphasis is also put on the peculiar political opportunity structure, and the difficult and movement-unfriendly conditions in which the citizens’ platform operated. On the other hand, the article tries to show the gains and losses of a coalition between an established political party, and a loose horizontal network of citizens and citizens’ organizations that advocate for rule of law and protection of human rights. The central conclusions that can be extrapolated from this work are the strong and committed claims by the movement, articulated through various repertoires of action, but also the active role of the international community, which presented a conditio sine qua non, bringing down the regime led by former PM Nikola Gruevski and freeing the state institutions previously occupied by the political parties in power.

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