Mood fluctuations, projection bias, and volatility of equity prices

By Rajnish Mehra, R. Sah. 2002

152 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, General Decision Sciences

View Paper: https://www.semanticscholar.org/paper/1fe8a5e84939833f4b9f8c9bce311c70fb0192a9

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Finance

In General Decision Sciences

Citations in the corpus

Stock market returns: A note on temperature anomaly (2005, background): “For instance, Schwarz (1990), and Loewenstein et al. (2001) provided theories linking mood and feelings to general decision-making, while Etzioni (1988); Romer (2000); Hanock (2002), and Mehra and Sah (2002) established the importance of emotions in economic decision-making.”
Chapter 14 The equity premium in retrospect (2003, unknown): “30 See Barberis, Huang and Santos (2001) and Mehra and Sah (2002).”
Investor sentiment and its nonlinear effect on stock returns—New evidence from the Chinese stock market based on panel quantile regression model (2015, background): “Mehra and Sah (2002) construct various investor sentiment indices and investor sentiment-based pricing models to investigate how investor sentiment affects returns of portfolios.”
Breaks and persistency: macroeconomic causes of stock market volatility (2006, background): “On the other hand, the linkage in Mehra and Sah [69] is more direct since small fluctuations of the discount factor are found to exercise a large impact on returns volatility.”
Weather-Induced Mood, Institutional Investors, and Stock Returns (2015, methodology): “procedure, we adjust the standard errors using the procedure described by Newey and West (1994)”
The Role of Feelings in Investor Decision-Making (2005, background): “An interesting recent paper by Mehra and Sah (2002) does provide theoretical support for feelings influencing equity prices.”
O Sole Mio An Experimental Analysis of Weather and Risk Attitudes (2013, background): “Mood based explanations of investors’ behavior and asset returns have become increasingly popular in the finance literature (see for example Mehra and Sah, 2002, Dougal, Engelberg, Garcia, and Parsons, 2012, and Bodoh-Creed, 2012), and weather is often invoked as a possible mechanism through which…”
Weather and intraday patterns in stock returns and trading activity (2008, background): “Mehra and Sah (2002) propose a model demonstrating that mood fluctuation induced by projection bias has an important influence on the volatility of equity prices.”
The influence of mood on the willingness to take financial risks (2008, background): “Mehra and Sah ( 2002 ) examined the theory of projection bias and moods.”