Do Behavioral Biases Affect Prices

By Joshua D. Coval, Tyler Shumway. 2005

624 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/cd14030479e4b3890dcc2cbda98eecc8f291b7e2

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Citations in the corpus

Do Investor Sophistication and Trading Experience Eliminate Behavioral Biases in Financial Markets (2005, neutral): “So as not to impose a functional form on the measure of trading experience, we group an investor’s trading life into the first five trades [1, 5], the next five trades [6, 10], and so on.”
The Reach of the Disposition Effect: Large Sample Evidence Across Investor Classes* (2006, neutral): “For instance, Coval and Shumway (2005) analyze the trades of Chicago Board of Trade professional market makers.”
Divergence of Sentiment and Stock Market Trading (2017, neutral): “…that cloudy weather is related to high transaction volumes, Brown (1999) and Lee et al. (2002) find that unusually high levels of sentiment are associated with high volatility, and Coval and Shumway (2005) report that traders with losses in the morning tend to take higher risks in the afternoon.”
Impact of Financial Literacy and Behavioural Biases on Investment Decision-making (2021, background): “Bandwagon effect is a situation in which investors feel safer and assured if they come to know that their decision is consistent with the decision of others (Coval & Tyler, 2005).”
Behavioural Finance: A Review and Synthesis (2007, neutral): “Coval and Shumway (2005) provide some evidence on this by arguing that proprietary traders on the Chicago Board of Trade exchange (which mainly trades derivatives) take more risk late in the day (as measured by number of trades and trade sizes) to cover their losses in the beginning of the day.”
Institutional Investors, Past Performance, and Dynamic Loss Aversion (2009, background): “A large body of work finds that individuals, including retail and professional investors, are prone to the disposition effect (Odean (1998), Linnainmaa (2003), Locke and Mann (2005), and Coval and Shumway (2005)).”
Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches (2005, neutral): “I found only two papers in the literature that have used the Fama-MacBeth approach in the way suggested by Skoulakis (Coval and Shumway, 2005; and Bloomfield, O’Hara, and Saar, 2006).”
The Prevalence of the Disposition Effect in Mutual Funds’ Trades (2012, neutral): “…for home buyers and sellers (e.g., Case and Shiller (1988), Genesove and Mayer (2001)), for Israeli investors (e.g., Shapira and Venezia (2001)), for futures traders at the Chicago Mercantile Exchange (e.g., Locke and Mann (2005)), and for T-bond futures traders (e.g., Coval and Shumway (2005)).”
Are Investors Moonstruck? - Lunar Phases and Stock Returns (2001, neutral): “The behavioral finance literature documents evidence on the effects of mood on asset prices (e.g., Avery and Chevalier 1999; Kamstra, Kramer, and Levi, 2000, 2003; Hirshleifer and Shumway, 2003; Coval and Shumway, 2005).”