...The Behavior of Individual Investors* Brad M. Barbera and Terrance Odeanb aGraduate bHaas School of Management, University of California, Davis, Davis, CA 95616, USA. Tel.:+1 (530) 752 0512 School of Business, University of California, Berkeley, Berkeley, CA 94720, USA. Tel.:+1 (510) 642 6767 Contents 1. The Performance of Individual Investors 1.1 The Average Individual 1535 1535 1.1.1 Long-Horizon Results 1.1.2 Short-Horizon Results 1.1.3 Market vs. Limit Orders 1540 1542 1543 1.2 Cross-Sectional Variation in Performance 1544 2. Why do Individual Investors Underperform? 1547 2.1 Asymmetric Information 1547 2.2 Overconfidence 1547 2.3 Sensation Seeking 1549 2.4 Familiarity 1550 3. Disposition Effect: Selling Winners and Holding Losers The 1551 3.1 The Evidence 1551 3.2 Why Do Investors Prefer to Sell Winners? 1557 4. Reinforcement Learning 1559 5. Attention: Chasing the Action 1559 6. Failure to Diversify 1560 7. Are Individual Investors Contrarians? 1564 8. Conclusion 1565 References 1565 The bulk of research in modern economics has been built on the notion that human beings are rational agents who attempt to maximize wealth while minimizing risk.These agents carefully assess the risk and return of all possible investment options to arrive at an investment portfolio that suits their level of risk aversion. Models based on these * e thank Nicholas Barberis...
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...Impact of Peer Pressure on Alcohol Consumption among Adolescents Halamehi R Abstract This paper addresses the impact of peer pressure on risky behaviour such as alcohol abuse among adolescents focusing on high school students from 12-19 years. Peer pressure in relation to alcohol use include peer norms, peer approval to drinking and the need to conform. Studies show that peer pressure does have an impact on alcohol use. However, other factors such as intrapersonal or psycho social forces, as well as parental influencess also have an effect on adolescents decisions to drink. The following literature reviews show the extent of peer pressure on adolescent alcohol and the other factors that may have a contribution to it. Impact of Peer Pressure on Risky Behaviour (alcohol abuse) Peer pressure refers to the influences that a group of friends or peers can have over each other. It is common among adolescents who are at a time in their lives where development of a separate identity from the identity perceptions their parents have of them is at a peak. Additionally, it is at this time that peers are trying to fit in with their group and therefore find themselves in activities or risky behavior that they would otherwise partake in. Peer pressure has no demographic boundaries affecting males and females over a wide age range in different ways with negative implications. Such negative implications of peer pressure include risky behaviors such as alcohol abuse. Alcohol consumption...
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...Journal of Management http://jom.sagepub.com Research on Employee Recruitment: So Many Studies, So Many Remaining Questions James A. Breaugh and Mary Starke Journal of Management 2000; 26; 405 DOI: 10.1177/014920630002600303 The online version of this article can be found at: http://jom.sagepub.com/cgi/content/abstract/26/3/405 Published by: http://www.sagepublications.com On behalf of: Southern Management Association Additional services and information for Journal of Management can be found at: Email Alerts: http://jom.sagepub.com/cgi/alerts Subscriptions: http://jom.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations http://jom.sagepub.com/cgi/content/refs/26/3/405 Downloaded from http://jom.sagepub.com at Universiteit van Amsterdam SAGE on November 9, 2009 Journal of Management 2000, Vol. 26, No. 3, 405– 434 Research on Employee Recruitment: So Many Studies, So Many Remaining Questions James A. Breaugh and Mary Starke University of Missouri–St. Louis Over the last thirty years, the amount of research on recruitment topics has increased dramatically. Despite this increase, recent reviews of the recruitment literature often have had a somewhat pessimistic tone. Reviewers have concluded that we still do not know a great deal about why recruitment activities have the effects they do. In particular, recent reviews have criticized many of the studies conducted...
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...Social Networks - Negative Impact Likes and dislikes are natural responses to the opinions of human beings according to the things that they are observing at the time and personal preferences. Problems occur when these personal preferences move from the realm of opinion into the realm of facts. The purpose of this paper is to examine the impact of social networks to discover their potential negative effects on the users and society. The primary focus of this paper being Facebook, one of the biggest names in the industry. Opinion Summary Vanderbilt Photographs are a way to memorialize an event that was meaningful, stupid, or sometimes dangerous. People usually share their most cherished photographs with close friends, family, and significant others. This is no longer the case. With the birth of Facebook and the explosion of social networking, complete strangers are now considered close friends because they liked something on the user’s page, or they are friends of friends (Vanderbilt, ). The sheer weight of this phenomenon has reached beyond the social aspect to the business and legal aspect. It has gotten to the point that businesses now check the Facebook page of potential employees to find out if they are truthful on their applications or to simply find out the kind of person they are outside the interview room. When it comes to the law, Facebook photos are being used as evidence to either prove or disprove an individual's state of mind at the time of the incident...
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...OVERVIEW ON THE THEORY OF RECRUITMENT PROCESS AND THE USE OF SELECTION TOOLS November 2015 PETER HORVATH CASS BUSINESS SCHOOL – MEMBASTUDENT NUMBER: 150000247 | Table of Contents Executive Summary 3 The Focus of this Paper 3 Recruitment Process 3 Selection Tools 6 Recommendations for My Firm 7 References 8 Executive Summary Human capital is a potential source of firms’ competitive advantage. To capitalize on this, firms must understand the structure and the different aspects of the recruitment process and selection, and put in place a recruitment strategy, which sets out objectives, specifies recruitment activities, and takes into consideration intervening variables to accomplish the desired recruitment outcomes. In this process, firms are strongly advised to apply an individually tailored combination of selection tools with the highest overall validity. Based upon the findings of this paper, to improve my firm’s HR practice I recommend to (1) plan the recruitment and selection process and form a strategy, (2) combine various selection tools, (3) keep accurate records and (4) avoid all forms of discrimination. The Focus of this Paper In my firm, decision makers neither understand the strategic significance of recruitment and selection nor use any academic findings and best practices to overcome stuffing challenges. Despite the facts that (i) recruiting is of utmost importance not only for achieving competitive advantage...
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...Future Trends Impacting Public Administration Introduction Excellent public administration and management of public entities has always been the major responsibility of public officials and administrators of public funds. Throughout the years, the public administration has encountered many challenges and changes that impact the overall society. As the world evolve into new alternatives as is technology and changes in public policy, the administration of such evolves and changes as well. This paper intent to provide the reader with future trends and social changes impacting public administration as well as future public policy challenges for public administration. Future Trends Technology - The implementation of technology in organizations as in public agencies have helped developed many strategies in order to provide services even faster. Technology have also helped through the Internet to connect organizations, computers and users throughout the world. “Mexico recently introduced an advanced system of electronic tendering and procurement, and Korea is launching an electronic system for processing applications which will allow applicants to monitor any movement of their case over the internet” (Wolf, 2000, p. 690). Automation of services if properly implemented will increase overall services provided to the public. But even though technology provides with advances to improve overall services in public administration, it is also noted that provides with alternatives...
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... | | |The tendency of people to view events as representative of some specific | | |class and ignore the laws of probability in the process | | |And conservatism. | |Lee, Shleifer & Thaler (1991) |CEFD suggest that as the discount increase, retail investor sentiment | | |decrease. | |Barber, Odean and Zhu(2006) |Stocks heavily bought by individual investors one week earn stronger | | |returns in the subsequent week. | |Baker and stein (2004) |Trading volume is a measure of liquidity, they also identify...
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...Jun 2014. Submit your article to this journal Article views: 364 View related articles View Crossmark data Citing articles: 3 View citing articles Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=ccom20 Download by: [The University of Manchester Library] Date: 01 December 2015, At: 11:00 Compare, 2015 Vol. 45, No. 5, 664–685, http://dx.doi.org/10.1080/03057925.2014.928508 International education policy transfer – borrowing both ways: the Hong Kong and England experience Downloaded by [The University of Manchester Library] at 11:00 01 December 2015 Katherine Forestier* and Michael Crossley Graduate School of Education, University of Bristol, Bristol, UK This paper analyses how the impact of international student achievement studies and the recent economic crisis in Europe are influencing the development of educational policy transfer and borrowing, from East to West. This is contrasted with education reform movements in East Asia, which have long legacies of borrowing from so-called ‘progressive’ discourses in the West. England and Hong Kong are used as case studies. Since...
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...THE GEORGE L. GRAZIADIO SCHOOL OF BUSINESS AND MANAGEMENT ------------------------------------------------- LEGL 470.41 LEGAL ENVIROMENT OF BUSINESS PROFESSOR LISA D. HERZOG SUMMER 2013 MONDAY 6:00 P.M TO 10:00 P.M. IRVINE GRADUATE CAMPUS ------------------------------------------------- Obesity Lawsuits Against the Fast Food Industry Final Paper August 2, 2013 Breanna Neal I. Introduction Should you be able to sue a restaurant such as McDonald’s for your obesity? Well, it depends who you ask. The customers of such fast-food companies believe their health problems were caused by overeating their addictive fatty foods. Lawmakers are on the other end of the spectrum attempting to ban such litigation because they believe that it is the consumer’s responsibility to not overeat. Today we live in a society where many do not want to take responsibility for their own actions. Everyone wants to jump on the band wagon and sue a business. I decided to take a look at the obesity lawsuits over the years against fast-food companies in order to find out what protection they have from such disgruntled customers. There are many different positions on the topic and various legal cases that went to court. In this research paper I am going to expand on my findings of this controversial topic. First, I will explain the history of obesity law suites and how the first one led many others to sue. Next, I will cite, describe, and analyze various obesity law suits...
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...Journal of Operations Management 25 (2007) 65–82 www.elsevier.com/locate/jom The impact of enterprise systems on corporate performance: A study of ERP, SCM, and CRM system implementations Kevin B. Hendricks a,1, Vinod R. Singhal b,*, Jeff K. Stratman b,2 b Richard Ivey School of Business, The University of Western Ontario, London, Ont., Canada N6A-3K7 College of Management, Georgia Institute of Technology, 800 West Peachtree St., NW, Atlanta, GA 30332-0520, United States Available online 23 March 2006 a Abstract This paper documents the effect of investments in Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer Relationship Management (CRM) systems on a firm’s long-term stock price performance and profitability measures such as return on assets and return on sales. The results are based on a sample of 186 announcements of ERP implementations, 140 SCM implementations, and 80 CRM implementations. Our analysis of the financial benefits of these implementations yields mixed results. In the case of ERP systems, we observe some evidence of improvements in profitability but not in stock returns. The results for improvements in profitability are stronger in the case of early adopters of ERP systems. On average, adopters of SCM system experience positive stock returns as well as improvements in profitability. There is no evidence of improvements in stock returns or profitability for firms that have invested in CRM. Although our results are not uniformly...
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...What Do Adults Think about Young People? by Joel Tolman Perceptions of young people are remarkably negative Most Americans look at today’s teenagers with misgivings and trepidation, viewing them as undisciplined, disrespectful and unfriendly...And people apply these criticisms to children across a broad economic spectrum, to children from disadvantaged backgrounds as well as to children from the middle and affluent classes. These words, taken from a 1997 Public Agenda survey and confirmed by a 1999 follow-up study, are disheartening.1 But while we may experience shock and disappointment when reading the results of these studies, few of us are surprised. These results are part of a larger story about young people — how we view their roles and the expectations we have of them — and are indicative of a larger narrative that casts many young people as less than full citizens. In effect, we, as a society, are telling young people that they lack the capacity to play meaningful roles in our communities. This story — this pattern of low expectations — is endemic rather than epidemic. It exists steadily and lastingly, rather than temporarily. This story is part of our folkways: we can find examples from Renaissance France, a newly independent United States, and last week’s newspaper. We can trace the story back to the psychological theories of Freud, Erickson and others that emphasize the sturm und drang (storm and stress) of adolescence, and to a shifting economy...
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...667 coefficients from 71 studies examining relationships between various predictors with job– organization attraction, job pursuit intentions, acceptance intentions, and job choice. The moderating effects of applicant gender, race, and applicant versus nonapplicant status were also examined. Results showed that applicant attraction outcomes were predicted by job– organization characteristics, recruiter behaviors, perceptions of the recruiting process, perceived fit, and hiring expectancies, but not recruiter demographics or perceived alternatives. Path analyses showed that applicant attitudes and intentions mediated the predictor–job choice relationships. The authors discuss the implications of these findings for recruiting theory, research, and practice. Keywords: recruiting, job choice, applicant reactions, person– organization fit, meta-analysis a quantitative review of this literature has not been conducted. A meta-analytic review would complement the existing narrative reviews by improving the estimation of the relationships between predictors and outcomes associated with applicant attraction (Schmidt & Hunter, 2001). Accordingly, the first goal of this study was to use meta-analytic techniques to summarize the relationships between traditional predictors and outcomes...
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...FOREWORD ....................................................................................................................................................................... 3 2. INTRODUCTION ....................................................................................................................................................................... 4 2.1. THE REPORT ....................................................................................................................................................................... 5 2.2. BACKGROUND ....................................................................................................................................................................... 5 3. RESEARCH DIRECTIONS ....................................................................................................................................................................... 8 3.1. ACTIVE USER PERSPECTIVES ....................................................................................................................................................................... 9 3.1.1. Important studies ..................................................................................................................................................................... 11 3.1.2. Problems with the Active User perspective .....................................................................................................................
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...Does Home Schooling Prepare A Child For College? The Advantages of Home Schooling Fredalene B. Vigil National American University Author Note English Composition II Professor Lorrinda Kahn November 23, 2014 Abstract Some people have misconceptions about the benefits of homeschooling. Some believe that home schooling does not prepare a child socially, emotionally or academically for college. They believe that home schooling has a negative effect on their social well-being for their future. Studies show that children who are home schooled have great social skills due to the fact that they interact with a wider group of people rather than the same children in a classroom on a daily basis. Homeschoolers are able to associate with groups of children who have similar interests and values. Some also believe that the quality of education does not prepare a child academically to be successful in college. Test scores on the college admission exams such as the SAT and ACT have shown that homeschoolers consistently perform above the national level. Home schooled children display qualities such as the ability to work independently and exhibit strong leadership skills. Does Home Schooling Prepare Children For College? The Advantages of Home Schooling There are several misconceptions and myths about home schooled children...
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...Abstract This paper reviews the interrelationship among family structure, patterns of single parent decision making and deviant behavior among adolescents. It reviews family income and non custodial parent involvement. Patterns of family decision making and family structure both have a significant effect on adolescent deviance behavior. Data on the child’s behavior, the child’s life at home, and parental relation with the child are collected through self reports. Understanding the family structure can have an important role in the intervention and prevention of deviant behavior in the child. More parental monitoring was associated with less delinquency in a single parent household. We examine family structure including two parent families, single mother families, single father families, and stepfamilies. This paper addresses the implications of different theories and findings designed to reduce deviance. Single Parent Home Effect on Adolescence Deviant behavior among youth has increased in the United States (Steinberg, 1987). According to the Nature and Meaning of Deviance (2008), Deviant behavior is described as actions or behaviors that violate cultural norms including enacted rules and social norms. This paper will examine the social factors associated with deviant behavior among juveniles. It will explore the correlation, if any, between single parent homes and the rise in deviant behavior in juveniles. The two...
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