STATUS QUO MONETARY LOSSAVERSION AND FORECASTING AN APPROACH TO INVESTMENT DURING AMYGDALA DAMAGES ASYMMETRY

http://dx.doi.org/10.31703/gssr.2020(V-III).13      10.31703/gssr.2020(V-III).13      Published : Sep 3
Authored by : MuhammadAwais , SadafKashif , AsifRaza

13 Pages : 118-127

References

  • Abendroth, J., & Richter, T. (2021). How to understand what you don't believe: Metacognitive training prevents belief-biases in multiple text comprehension. Learning and Instruction, 71, 101394.
  • Ang, J. B. (2008). What are the mechanisms linking financial development and economic growth in Malaysia? Economic Modelling, 25(1), 38-53.
  • Ariely, D., Huber, J., & Wertenbroch, K. (2005). When do losses loom larger than gains? Journal of Marketing Research, 42(2), 134-138.
  • Baker, M., & Wurgler, J. (2007). Investor sentiment in the stock market. Journal of economic perspectives, 21(2), 129-152.
  • Barberis, N., & Huang, M. (2001). Mental accounting, loss aversion, and individual stock returns. the Journal of Finance, 56(4), 1247-1292.
  • Bearden, J. N., Murphy, R. O., & Rapoport, A. (2008). Decision biases in revenue management: Some behavioral evidence. Manufacturing & Service Operations Management, 10(4), 625-636
  • Brenner, L., Rottenstreich, Y., Sood, S., & Bilgin, B. (2007). On the psychology of loss aversion: Possession, valence, and reversals of the endowment effect. Journal of Consumer Research, 34(3), 369-376.
  • Camerer, C. (2005). Three cheers-psychological, theoretical, empirical-for loss aversion. Journal of marketing research, 42(2), 129-133.
  • De Martino, B., Camerer, C. F., & Adolphs, R. (2010). Amygdala damage eliminates monetary loss aversion. Proceedings of the National Academy of Sciences, 107(8), 3788-3792.
  • Duxbury, D., & Summers, B. (2004). Financial risk perception: Are individuals' variance averse or loss averse? Economics Letters, 84(1), 21-28.
  • Eisenhardt, K. M. (1989). Making fast strategic decisions in high-velocity environments. Academy of Management journal, 32(3), 543-576
  • Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of management journal, 50(1), 25-32.
  • Farooq, A., & Sajid, M. (2015). Factors affecting investment decision making: Evidence from equity fund managers and individual investors in Pakistan. Research Journal of Finance and Accounting, 6(9), 2222-1697.
  • Frisenna, C., & Rizzotti, D. (2020). Investment Decisions in Listed Family Firms: Risk Aversion and Emotional Attachment. In Management Controlling and Governance of Family Businesses (pp. 97-108). Springer, Cham.
  • Gomes, F. J. (2005). Portfolio choice and trading volume with loss-averse investors. The Journal of Business, 78(2), 675-706.
  • Goodman, T. H., Neamtiu, M., Shroff, N., & White, H. D. (2014). Management forecast quality and capital investment decisions. The Accounting Review, 89(1), 331-365.
  • Grayot, J. D. (2020). Dual process theories in behavioral economics and neuro-economics: a critical review. Review of Philosophy and Psychology, 11(1), 105-136.
  • Haddock-Millar, J., Sanyal, C., & Müller-Camen, M. (2016). Green human resource management: a comparative qualitative case study of a United States multinational corporation. The International Journal of Human Resource Management, 27(2), 192-211.
  • Haigh, M. S., & List, J. A. (2005). Do professional traders exhibit myopic loss aversion? An experimental analysis. The Journal of Finance, 60(1), 523-534.
  • Hardie, B. G., Johnson, E. J., & Fader, P. S. (1993). Modeling loss aversion and reference dependence effects on brand choice. Marketing science, 12(4), 378-394.
  • Harinck, F., Van Dijk, E., Van Beest, I., & Mersmann, P. (2007). When gains loom larger than losses: Reversed loss aversion for small amounts of money. Psychological science, 18(12), 1099- 1105.
  • Jain, R., Jain, P., & Jain, C. (2015). Behavioral biases in the decision making of individual investors. IUP Journal of Management Research, 14(3), 7
  • Kahneman, D., & Tversky, A. (1980). Prospect theory. Econometrica, 12
  • Karolyi, G. A., & Van Nieuwerburgh, S. (2020). New methods for the cross-section of returns. The Review of Financial Studies, 33(5), 1879-1890.
  • Kermer, D. A., Driver-Linn, E., Wilson, T. D., & Gilbert, D. T. (2006). Loss aversion is an affective forecasting error. Psychological science, 17(8), 649-653.
  • KILIÇ, E., & ACAR, M. (2020). ECONOMIC EDUCATION, FINANCIAL KNOWLEDGE AND INVESTOR'S ENDOWMENT EFFECT AND LOSS AVERSION BIASES RELATIONS. Theoretical and Applied Studies on Turkish Economy Vol. I, 85.
  • Labadie, P. (1989). Stochastic inflation and the equity premium. Journal of Monetary Economics, 24(2), 277-298.
  • Landy, F. J. (2008). Stereotypes, bias, and personnel decisions: Strange and stranger. Industrial and Organizational Psychology, 1(4), 379-392.
  • Mayfield, C., Perdue, G., & Wooten, K. (2008). Investment management and personality type. Financial services review, 17(3), 219-236.
  • Mrkva, K., Johnson, E. J., Gächter, S., & Herrmann, A. (2020). Moderating loss aversion: loss aversion has moderators, but reports of its death are greatly exaggerated. Journal of Consumer Psychology, 30(3), 407-428.
  • Nataraj, S., Alvarez, C., Sada, L., Juan, A. A., Panadero, J., & Bayliss, C. (2020). Applying Statistical Learning Methods for Forecasting Prices and Enhancing the Probability of Success in Logistics Tenders. Transportation Research Procedia, 47, 529-536.
  • Novemsky, N., & Kahneman, D. (2005). The boundaries of loss aversion. Journal of Marketing research, 42(2), 119-128.
  • Polman, E. (2012). Self-other decision making and loss aversion. Organizational Behavior and Human Decision Processes, 119(2), 141-150.
  • Rakow, T., Cheung, N. Y., & Restelli, C. (2020). Losing my loss aversion: The effects of current and past environment on the relative sensitivity to losses and gains. Psychonomic bulletin & review, 27(6), 1333-1340.
  • Roediger III, H. L., & Pyc, M. A. (2012). Inexpensive techniques to improve education: Applying cognitive psychology to enhance educational practice. Journal of Applied Research in Memory and Cognition, 1(4), 242-248.
  • Rubaltelli, E., Rubichi, S., Savadori, L., Tedeschi, M., & Ferretti, R. (2005). Numerical information format and investment decisions: Implications for the disposition effect and the status quo bias. The Journal of Behavioral Finance, 6(1), 19-26.
  • Sokol-Hessner, P., Hsu, M., Curley, N. G., Delgado, M. R., Camerer, C. F., & Phelps, E. A. (2009). Thinking like a trader selectively reduces individuals' loss aversion. Proceedings of the National Academy of Sciences, 106(13), 5035-5040.
  • Stickel, S. E. (1991). Common stock returns surrounding earnings forecast revisions: More puzzling evidence. Accounting Review, 402-416.
  • Tsai, I. C. (2020). Alternative explanation of the money illusion: The effect of unexpected low inflation. International Review of Economics & Finance, 69, 110-123.
  • Tversky, A., & Kahneman, D. (1991). Loss aversion in riskless choice: A reference-dependent model. The quarterly journal of economics, 106(4), 1039-1061
  • West, M. (2020). Bayesian forecasting of multivariate time series: scalability, structure uncertainty and decisions. Annals of the Institute of Statistical Mathematics, 72(1), 1-31.

References

  • Abendroth, J., & Richter, T. (2021). How to understand what you don't believe: Metacognitive training prevents belief-biases in multiple text comprehension. Learning and Instruction, 71, 101394.
  • Ang, J. B. (2008). What are the mechanisms linking financial development and economic growth in Malaysia? Economic Modelling, 25(1), 38-53.
  • Ariely, D., Huber, J., & Wertenbroch, K. (2005). When do losses loom larger than gains? Journal of Marketing Research, 42(2), 134-138.
  • Baker, M., & Wurgler, J. (2007). Investor sentiment in the stock market. Journal of economic perspectives, 21(2), 129-152.
  • Barberis, N., & Huang, M. (2001). Mental accounting, loss aversion, and individual stock returns. the Journal of Finance, 56(4), 1247-1292.
  • Bearden, J. N., Murphy, R. O., & Rapoport, A. (2008). Decision biases in revenue management: Some behavioral evidence. Manufacturing & Service Operations Management, 10(4), 625-636
  • Brenner, L., Rottenstreich, Y., Sood, S., & Bilgin, B. (2007). On the psychology of loss aversion: Possession, valence, and reversals of the endowment effect. Journal of Consumer Research, 34(3), 369-376.
  • Camerer, C. (2005). Three cheers-psychological, theoretical, empirical-for loss aversion. Journal of marketing research, 42(2), 129-133.
  • De Martino, B., Camerer, C. F., & Adolphs, R. (2010). Amygdala damage eliminates monetary loss aversion. Proceedings of the National Academy of Sciences, 107(8), 3788-3792.
  • Duxbury, D., & Summers, B. (2004). Financial risk perception: Are individuals' variance averse or loss averse? Economics Letters, 84(1), 21-28.
  • Eisenhardt, K. M. (1989). Making fast strategic decisions in high-velocity environments. Academy of Management journal, 32(3), 543-576
  • Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of management journal, 50(1), 25-32.
  • Farooq, A., & Sajid, M. (2015). Factors affecting investment decision making: Evidence from equity fund managers and individual investors in Pakistan. Research Journal of Finance and Accounting, 6(9), 2222-1697.
  • Frisenna, C., & Rizzotti, D. (2020). Investment Decisions in Listed Family Firms: Risk Aversion and Emotional Attachment. In Management Controlling and Governance of Family Businesses (pp. 97-108). Springer, Cham.
  • Gomes, F. J. (2005). Portfolio choice and trading volume with loss-averse investors. The Journal of Business, 78(2), 675-706.
  • Goodman, T. H., Neamtiu, M., Shroff, N., & White, H. D. (2014). Management forecast quality and capital investment decisions. The Accounting Review, 89(1), 331-365.
  • Grayot, J. D. (2020). Dual process theories in behavioral economics and neuro-economics: a critical review. Review of Philosophy and Psychology, 11(1), 105-136.
  • Haddock-Millar, J., Sanyal, C., & Müller-Camen, M. (2016). Green human resource management: a comparative qualitative case study of a United States multinational corporation. The International Journal of Human Resource Management, 27(2), 192-211.
  • Haigh, M. S., & List, J. A. (2005). Do professional traders exhibit myopic loss aversion? An experimental analysis. The Journal of Finance, 60(1), 523-534.
  • Hardie, B. G., Johnson, E. J., & Fader, P. S. (1993). Modeling loss aversion and reference dependence effects on brand choice. Marketing science, 12(4), 378-394.
  • Harinck, F., Van Dijk, E., Van Beest, I., & Mersmann, P. (2007). When gains loom larger than losses: Reversed loss aversion for small amounts of money. Psychological science, 18(12), 1099- 1105.
  • Jain, R., Jain, P., & Jain, C. (2015). Behavioral biases in the decision making of individual investors. IUP Journal of Management Research, 14(3), 7
  • Kahneman, D., & Tversky, A. (1980). Prospect theory. Econometrica, 12
  • Karolyi, G. A., & Van Nieuwerburgh, S. (2020). New methods for the cross-section of returns. The Review of Financial Studies, 33(5), 1879-1890.
  • Kermer, D. A., Driver-Linn, E., Wilson, T. D., & Gilbert, D. T. (2006). Loss aversion is an affective forecasting error. Psychological science, 17(8), 649-653.
  • KILIÇ, E., & ACAR, M. (2020). ECONOMIC EDUCATION, FINANCIAL KNOWLEDGE AND INVESTOR'S ENDOWMENT EFFECT AND LOSS AVERSION BIASES RELATIONS. Theoretical and Applied Studies on Turkish Economy Vol. I, 85.
  • Labadie, P. (1989). Stochastic inflation and the equity premium. Journal of Monetary Economics, 24(2), 277-298.
  • Landy, F. J. (2008). Stereotypes, bias, and personnel decisions: Strange and stranger. Industrial and Organizational Psychology, 1(4), 379-392.
  • Mayfield, C., Perdue, G., & Wooten, K. (2008). Investment management and personality type. Financial services review, 17(3), 219-236.
  • Mrkva, K., Johnson, E. J., Gächter, S., & Herrmann, A. (2020). Moderating loss aversion: loss aversion has moderators, but reports of its death are greatly exaggerated. Journal of Consumer Psychology, 30(3), 407-428.
  • Nataraj, S., Alvarez, C., Sada, L., Juan, A. A., Panadero, J., & Bayliss, C. (2020). Applying Statistical Learning Methods for Forecasting Prices and Enhancing the Probability of Success in Logistics Tenders. Transportation Research Procedia, 47, 529-536.
  • Novemsky, N., & Kahneman, D. (2005). The boundaries of loss aversion. Journal of Marketing research, 42(2), 119-128.
  • Polman, E. (2012). Self-other decision making and loss aversion. Organizational Behavior and Human Decision Processes, 119(2), 141-150.
  • Rakow, T., Cheung, N. Y., & Restelli, C. (2020). Losing my loss aversion: The effects of current and past environment on the relative sensitivity to losses and gains. Psychonomic bulletin & review, 27(6), 1333-1340.
  • Roediger III, H. L., & Pyc, M. A. (2012). Inexpensive techniques to improve education: Applying cognitive psychology to enhance educational practice. Journal of Applied Research in Memory and Cognition, 1(4), 242-248.
  • Rubaltelli, E., Rubichi, S., Savadori, L., Tedeschi, M., & Ferretti, R. (2005). Numerical information format and investment decisions: Implications for the disposition effect and the status quo bias. The Journal of Behavioral Finance, 6(1), 19-26.
  • Sokol-Hessner, P., Hsu, M., Curley, N. G., Delgado, M. R., Camerer, C. F., & Phelps, E. A. (2009). Thinking like a trader selectively reduces individuals' loss aversion. Proceedings of the National Academy of Sciences, 106(13), 5035-5040.
  • Stickel, S. E. (1991). Common stock returns surrounding earnings forecast revisions: More puzzling evidence. Accounting Review, 402-416.
  • Tsai, I. C. (2020). Alternative explanation of the money illusion: The effect of unexpected low inflation. International Review of Economics & Finance, 69, 110-123.
  • Tversky, A., & Kahneman, D. (1991). Loss aversion in riskless choice: A reference-dependent model. The quarterly journal of economics, 106(4), 1039-1061
  • West, M. (2020). Bayesian forecasting of multivariate time series: scalability, structure uncertainty and decisions. Annals of the Institute of Statistical Mathematics, 72(1), 1-31.

Cite this article

APA

    APA : Awais, M., Kashif, S., & Raza, A. (2020). Status Quo, Monetary Loss-Aversion and Forecasting - An Approach to Investment During Amygdala Damages & Asymmetry. Global Social Sciences Review, V(III), 118-127. https://doi.org/10.31703/gssr.2020(V-III).13

CHICAGO

    CHICAGO : Awais, Muhammad, Sadaf Kashif, and Asif Raza. 2020. "Status Quo, Monetary Loss-Aversion and Forecasting - An Approach to Investment During Amygdala Damages & Asymmetry." Global Social Sciences Review, V (III): 118-127 doi: 10.31703/gssr.2020(V-III).13

HARVARD

    HARVARD : AWAIS, M., KASHIF, S. & RAZA, A. 2020. Status Quo, Monetary Loss-Aversion and Forecasting - An Approach to Investment During Amygdala Damages & Asymmetry. Global Social Sciences Review, V, 118-127.

MHRA

    MHRA : Awais, Muhammad, Sadaf Kashif, and Asif Raza. 2020. "Status Quo, Monetary Loss-Aversion and Forecasting - An Approach to Investment During Amygdala Damages & Asymmetry." Global Social Sciences Review, V: 118-127

MLA

    MLA : Awais, Muhammad, Sadaf Kashif, and Asif Raza. "Status Quo, Monetary Loss-Aversion and Forecasting - An Approach to Investment During Amygdala Damages & Asymmetry." Global Social Sciences Review, V.III (2020): 118-127 Print.

OXFORD

    OXFORD : Awais, Muhammad, Kashif, Sadaf, and Raza, Asif (2020), "Status Quo, Monetary Loss-Aversion and Forecasting - An Approach to Investment During Amygdala Damages & Asymmetry", Global Social Sciences Review, V (III), 118-127

TURABIAN

    TURABIAN : Awais, Muhammad, Sadaf Kashif, and Asif Raza. "Status Quo, Monetary Loss-Aversion and Forecasting - An Approach to Investment During Amygdala Damages & Asymmetry." Global Social Sciences Review V, no. III (2020): 118-127. https://doi.org/10.31703/gssr.2020(V-III).13