Do Investors Overweight Personal Experience? Evidence from IPO Subscriptions

By Markku Kaustia, Samuli Knüpfer. 2008

411 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/e91d944ab91682f0e294dad722e8af42c27ed7f7

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Citations in the corpus

Recency, records and recaps: learning and non-equilibrium behavior in a simple decision problem (2014, neutral): “On the other hand, there is evidence of significant economic costs due to incomplete learning and recency bias in contexts such as credit card late fees [Agarwal et al. 2008], stock market participation [Malmendier & Nagel 2011] and IPO investment [Kaustia & Knupfer 2008].”
Learning from Inflation Experiences (2016, background): “Kaustia and Knüpfer (2008) and Chiang, Hirshleifer, Qian, and Sherman (2011) find that investors’ participation and bidding strategies in initial public offerings is influenced by extrapolation from previously experienced IPO returns.”
Do Investors Learn from Experience? Evidence from Frequent IPO Investors (2011, positive): “In contrast,Kaustia and Knupfer(2008) use data from offerings in which retail investors play no price-setting role, since they choose only whether or not to order shares.”
Peer performance and stock market entry (2012, neutral): “Details of the sample IPOs and their characteristics appear in Kaustia and Knüpfer (2008).”
Do Managers Overreact to Salient Risks? Evidence from Hurricane Strikes (2017, background): “Cash holdings could also increase if managers ignore the risk and learn about its probability when the hurricane occurs.”
Once Burned, Twice Shy: How Naive Learning, Counterfactuals, and Regret Affect the Repurchase of Stocks Previously Sold (2011, positive): “Kaustia and Knupfer (2008) document that investors are more likely to subscribe to initial public offerings (IPOs) if their personal experience with IPO investments has been profitable.”
Value versus growth investing: Why do different investors have different styles? (2015, neutral): “This evidence contributes to several recent studies which show the importance of life experiences and events for economic behaviors later in life (e.g., Oyer (2006), Kaustia and Knüpfer (2008), Malmendier and Nagel (2011), and Giuliano and Spilimbergo (2013)).”
Chapter 21 - Household Finance: An Emerging Field∗ (2013, positive): “Kaustia and Knüpfer (2008) find from Finnish data that that past positive investment experiences encourage direct equity investments in the future.”