...Manisha Yadav Purpose The study aims to test prospect theory (PT) predictions in the cryptocurrency (CC) market. It proposes a new asset pricing model that explores the potential of prospect theory value (PTV) as a significant predictor of CC returns. Design/methodology/approach The study...

...Preeti Goyal; Poornima Gupta; Vanita Yadav Purpose The purpose of this paper is to explore how heuristics are formed and whether herding and prospect theory act as antecedents to heuristics. The relationship is explored specifically for millennials. Design/methodology/approach The proposed...

... private investors' investment decisions in constructing an investment portfolio. 27 11 2020 22 02 2021 24 02 2021 © Emerald Publishing Limited 2021 Emerald Publishing Limited Licensed re-use rights only Behavioral finance Heuristic Prospect theory Herding Portfolio...

... for an investor's utility-maximizing choices with and without stock loan lotteries and compares outcomes. Findings Stock loan lotteries motivate prospect theory investors to buy and hold risky assets with high expected returns. Stock loan lotteries improve welfare more for poor investors and improve welfare...

...) by regressing the coefficients on the macroeconomic announcements. Findings – The authors find that in-the-money options are sensitive to such announcements, but that out-of-the money options are not. This is consistent with the interpretation of investor behaviour from prospect theory. Originality...

... literature on the equity premium puzzle; Section 3 presents the data and the methodology; Section 4 presents the results; Section 5 concludes the paper. Equity premium puzzle Probability distortion Prospect theory One of the most interesting puzzles in financial economics is the equity...

...John A. Doukas; Wenjia Zhang Purpose This study investigates the implications of the cumulative prospect theory in the context of US bank acquisitions, with particular emphasis on its probability weighting component. Specifically, we examine whether gambling attitudes matter in US bank takeover...