Title
Cognitive biases in investors’ behaviour under stress: Evidence from the London Stock Exchange
Source of Publication
International Review of Financial Analysis
Abstract
© 2017 Elsevier Inc. The paper examines the implications arising from the effect of two cognitive biases, representativeness and conservatism, for securities price behaviour on the London Stock Exchange. In a single- and multi-factor framework of abnormal returns, the aspects of trend and consistency in the performance ratios of UK companies are examined on the base of behavioural finance theories with respect to cognitive biases. The findings obtained by the multi-factor model confirm the existence of two cognitive biases and trends that investors observe in financial performance over the long-term horizon, which is not the case for the single-factor model.
Document Type
Article
First Page
54
Last Page
62
Publication Date
11-1-2017
DOI
10.1016/j.irfa.2017.09.003
Recommended Citation
Kariofyllas, Spyridon; Philippas, Dionisis; and Siriopoulos, Costas, "Cognitive biases in investors’ behaviour under stress: Evidence from the London Stock Exchange" (2017). Scopus Indexed Articles. 1249.
https://zuscholars.zu.ac.ae/scopus-indexed-articles/1249