Friend or Foe: Risk Factors and Behavioral Bias
ثبت نشده
چکیده
Profitability and investment are becoming the new focus of empirical asset pricing. This paper examines the extent to which their return predictability is attributable to behavioral bias, specifically, investors’ tendency to anchor on 52-week high. Based on a return decomposition methodology developed by George, Hwang, and Li (2014), two profitability measures (operating profitability, return on equity) and two investment measures (asset growth and investment to assets) are entirely attributable to anchoring. Gross profitability is an exception, which remains significant in predicting returns after accounting for anchoring. These results survive a battery of robustness checks and hold largely in various subsamples. The findings send a warning that these two potential risk factors could be actually attributed to behavioral bias.
منابع مشابه
Kant: Friend or Foe of the Believer? Plantinga and Other American Christian Responses to Kant's Epistemology
متن کامل
Apocrine Metaplasia in Intraductal Papilloma with Foci of DCIS: A Friend or Foe?
Malignant papillary neoplasms of the breast comprise a number of microscopically distinct lesions, where apocrine metaplasia is commonly found in papillomas compared to other papillary lesions including papillary carcinomas. However, association of apocrine metaplasia in papilloma with Ductal Carcinoma in Situ (DCIS) is not very well defined. The lesions with apocrine metaplasia are not only di...
متن کاملFriend or foe
For many years, β-defensins were best known for their antimicrobial activity. However, β-defensins also exert immunomodulatory functions, such as the chemotactic recruitment of immune cells via chemokine receptors. We demonstrated that mouse β-defensin 14 recruits CCR6(+) B cells into fibrosarcomas, resulting in enhanced angiogenesis and tumor development.
متن کاملA Model-Based Approach to Predicting Predator-Prey & Friend-Foe Relationships in Ant Colonies
Understanding predator-prey relationships among insects is a challenging task in the domain of insect-colony research. This is due to several factors involved, such as determining whether a particular behavior is the result of a predator-prey interaction, a friend-foe interaction or another kind of interaction. In this paper, we analyze a series of predator-prey and friend-foe interactions in t...
متن کامل