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Does the Stock Market Overreact
Research in experimental psychology suggests that, in violation of Bayes' rule, most people tend to "overreact" to unexpected and dramatic news events. This study of market efficiency investigatesExpand
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Further Evidence On Investor Overreaction and Stock Market Seasonality
In a previous paper, we found systematic price reversals for stocks that experience extreme long-term gains or losses: Past losers significantly outperform past winners. We interpreted this findingExpand
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A portrait of the individual investor
Abstract Behavioral finance models often rely on a concept of noise traders who are prone to judgment and decision-making errors. What do noise traders do? We review prior research and present newExpand
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Do Security Analysts Overreact
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Behavioral Finance: Quo Vadis?
Behavioral finance endeavors to bridge the gap between finance and psychology. Now an established field, behavioral finance studies investor decision processes which in turn shed light on anomalies,Expand
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R&D budgets and corporate earnings targets
Abstract Unlike other investments in the U.S., research and development budgets are not depreciated but expensed. Thus, pre-tax reported earnings fluctuate dollar-for-dollar with changes in R&DExpand
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Anomalies: A Mean-Reverting Walk Down Wall Street
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Herding in analyst earnings forecasts: evidence from the United Kingdom
We present an empirical analysis of herding behavior in analyst forecasts of earnings‐per‐share. Herding is defined as ‘excessive agreement’ among analyst predictions, i.e., a surprising degree ofExpand
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Style momentum within the S&P-500 index
Investors may be able to benefit from equity style management. We find that three company characteristics—market value of equity, book-to-market ratio, and dividend yield-capture stylerelated trendsExpand
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Stock Price Reversals and Overreaction to News Events: A Survey of Theory and Evidence
Stock price reversals may be due to short-term overreactions to news, waves of unjustified optimism or pessimism about future earnings, fear and normatively “excessive” risk premia, or other causes.Expand
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