The Worst, the Best, Ignoring All the Rest: The Rank Effect and Trading Behavior

By Samuel M. Hartzmark. 2015

174 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, General Decision Sciences

View Paper: https://www.semanticscholar.org/paper/5186accbadbe36645a72cc1c986f155b6e1eaa8b

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

1. Francesco D’acunto
2. Fabrizio Ferriani
3. Filippo Natoli
4. Nagpurnanand R. Prabhala

In Finance

1. Francesco D’acunto
2. Fabrizio Ferriani
3. Filippo Natoli
4. Nagpurnanand R. Prabhala
5. Mohd Rizal Palil

In General Decision Sciences

1. Fabrizio Ferriani
2. Filippo Natoli

Citations in the corpus

• Does It Pay to Pay Attention (2018, unknown): “We follow Hartzmark (2014) and, for every investor, we focus only on those days when stock specific information is acquired.”
• The Promises and Pitfalls of Robo-Advising (2019, background): “The third bias we consider is the rank effect first documented in a sample of US investors by Hartzmark (2014). The rank effect is the tendency of investors to sell the best and the worst performing stocks in their portfolios, while ignoring stocks in their portfolios that display intermediate perfo”
• ESG risks in times of Covid-19 (2020, background): “While sustainability does not have a direct connection with firms’ fundamentals, the literature identifies two main possible reasons why investors may prefer sustainable assets: one is about non-pecuniary motives, the other is that they might believe sustainability guarantees better risk-adjusted re”