scholarly journals Mental Accounting, Loss Aversion, and Individual Stock Returns

2001 ◽  
Vol 56 (4) ◽  
pp. 1247-1292 ◽  
Author(s):  
Nicholas Barberis ◽  
Ming Huang
Keyword(s):  
Stock Returns ◽  
Loss Aversion ◽  
Mental Accounting

scholarly journals The Impact of Corporate Performance on Mental Accounting and Loss Aversion in Financial Decisions

2021 ◽  
Vol 12 (4) ◽  
pp. 259
Author(s):  
Mona Hassabelrasoul Mohammad ◽  
Dalal Mohamed Ebrahim Mohamed ◽  
Elsaid Abd Elazim Tolba Elsharkawi
Keyword(s):  
Graduate Students ◽  
Real Estate ◽  
Loss Aversion ◽  
Corporate Performance ◽  
Mental Accounting ◽  
Organization Performance ◽  
Financial Decisions ◽  
Real Estate Company ◽  
The Impact

This study investigates the effect of the organization performance on two psychological biases, mental accounting and aversion to loss, on financial decisions to both investors and managers. To achieve this, two experiments are conducted. The first experiment consists of 40 graduate students as investors, while the second one consists of 40 accountants in a real estate company as managers. The results of the study indicate that the performance of companies impacts both mental accounting and aversion to loss of investors, whereas the performance of companies affects the mental accounting of managers in making their financial decisions but does not affect the aversion to loss.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI KEPUTUSAN INVESTASI PROPERTI PADA KOTA BATAM

2021 ◽  
Vol 14 (2) ◽  
pp. 89-98
Author(s):  
Hesniati ◽  
Dedy
Keyword(s):  
Behavioral Finance ◽  
Loss Aversion ◽  
Mental Accounting

Perilaku keputusan investasi mulai menarik perhatian akademisi internasional. Penelitian ini dilakukan untuk mengetahui pengaruh behavioral finance dengan menerapkan variabel overconfidence, representativeness, mental accounting, loss aversion dan herding terhadap keputusan investasi. Jumlah sampel yang dikumpulkan dan digunakan dalam penelitian berjumlah 203 responden di Kota Batam dan dianalisis menggunakan metode regresi linier berganda. Hasil penelitian menunjukkan bahwa overconfidence, mental accounting, dan herding berpengaruh positif signifikan terhadap keputusan investasi, sedangkan variabel representativeness dan loss aversion tidak berpengaruh terhadap keputusan investasi.

Is Awareness That Powerful? Women’s Financial Literacy Support to Prospects Behaviour in Prudent Decision-making

2021 ◽  
pp. 097215092199618
Author(s):  
Tahira Iram ◽  
Ahmad Raza Bilal ◽  
Shahid Latif
Keyword(s):  
Decision Making ◽  
Loss Aversion ◽  
Financial Literacy ◽  
Decision Process ◽  
Women Entrepreneurs ◽  
Investment Decision ◽  
Mental Accounting ◽  
Self Control ◽  
Investment Decision Making ◽  
Regret Aversion

Financial literacy is of utmost relevance in the field of entrepreneurship, especially in developing countries. However, what builds financial literacy and how it shapes investment decision-making of women entrepreneurs is an exiguously researched area. Building on this gap, this study postulates that women entrepreneurs’ prospect behavioural factors (loss aversion, regret aversion, mental accounting, and self-control) impact their investment decision process through the intervening role of financial literacy. Based on a stratified sample of 579 women entrepreneurs operating in Punjab, Pakistan, structural equation modelling was used to analyse the hypothesized relationship among variables. Findings showed that loss aversion, regret aversion, mental accounting, and self-control significantly influenced women’s financial literacy and investment decision process, whereas no impact of regret aversion was traced on investment decision-making. Thus, our results offered robust support that financial literacy stimulated by women entrepreneurs’ prospect behaviour invigorates their investment decision power.

scholarly journals Anomalies: Risk Aversion

2001 ◽  
Vol 15 (1) ◽  
pp. 219-232 ◽  
Author(s):  
Matthew Rabin ◽  
Richard H Thaler
Keyword(s):  
Risk Aversion ◽  
Expected Utility ◽  
Loss Aversion ◽  
Mental Accounting

Economists ubiquitously employ a simple and elegant explanation for risk aversion: It derives from the concavity of the utility-of-wealth function within the expected-utility framework. We show that this explanation is not plausible in most applications, since anything more than economically negligible risk aversion over moderate stakes requires a utility-of-wealth function that is so concave that it predicts absurdly severe risk aversion over very large stakes. We present examples of how the expected-utility framework has misled economists, and why we believe a better explanation for risk aversion must incorporate loss aversion and mental accounting.

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