• DOI:10.1111/0022-1082.00077
Corpus ID: 32589687

Presentation Slides for 'Investor Psychology and Security Market Under and Overreactions'

@inproceedings{Daniel1998PresentationSF,
  title={Presentation Slides for 'Investor Psychology and Security Market Under and Overreactions'},
  author={K. Daniel and D. Hirshleifer and A. Subrahmanyam},
  year={1998}
}

K. Daniel, D. Hirshleifer, A. Subrahmanyam

Published 1998

Economics

We propose a theory of securities market under- and overreactions based on two well-known psychological biases: investor overconfidence about the precision of private information; and biased self-attribution, which causes asymmetric shifts in investors’ confidence as a function of their investment outcomes. We show that overconfidence implies negative long-lag autocorrelations, excess volatility, and, when managerial actions are correlated with stock mispricing, public-event-based return… CONTINUE READING

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