Wall Street Crosses Memory Lane: How Witnessed Returns Affect Professionals' Expected Returns

Arvid O. I. Hoffmann, Zwetelina Iliewa, Lena Jaroszek

Publikation: KonferencebidragPaperForskningpeer review

Resumé

Witnessing stock market history in the making leaves behind a vivid story, but does not provide valuable information. Nevertheless, well-versed finance professionals extrapolate from witnessed returns when forming beliefs about expected returns which we show by using a unique dataset regarding professionals' career start in the finance industry. This result is robust to controlling for all publicly available information and interpersonal differences. Additionally, we find that returns witnessed early on in a career are more formative than those witnessed recently. Among the potential channels through which witnessed returns might affect professionals' expectations, a judgmental bias appears the most plausible.
OriginalsprogEngelsk
Publikationsdato2017
Antal sider49
StatusUdgivet - 2017
BegivenhedThe 15th International Paris December Finance Meeting - Novotel Paris les Halles hotel, Paris, Frankrig
Varighed: 21 dec. 201721 dec. 2017
Konferencens nummer: 15
https://www.eurofidai.org/fr/paris-december-2017

Konference

KonferenceThe 15th International Paris December Finance Meeting
Nummer15
LokationNovotel Paris les Halles hotel
LandFrankrig
ByParis
Periode21/12/201721/12/2017
Internetadresse

Emneord

  • Finance professionals
  • Expected returns
  • Witnessed returns
  • Non-informative observations
  • Early career experiences

Citer dette

Hoffmann, A. O. I., Iliewa, Z., & Jaroszek, L. (2017). Wall Street Crosses Memory Lane: How Witnessed Returns Affect Professionals' Expected Returns. Afhandling præsenteret på The 15th International Paris December Finance Meeting, Paris, Frankrig.
Hoffmann, Arvid O. I. ; Iliewa, Zwetelina ; Jaroszek, Lena. / Wall Street Crosses Memory Lane : How Witnessed Returns Affect Professionals' Expected Returns. Afhandling præsenteret på The 15th International Paris December Finance Meeting, Paris, Frankrig.49 s.
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Hoffmann, AOI, Iliewa, Z & Jaroszek, L 2017, 'Wall Street Crosses Memory Lane: How Witnessed Returns Affect Professionals' Expected Returns' Paper fremlagt ved The 15th International Paris December Finance Meeting, Paris, Frankrig, 21/12/2017 - 21/12/2017, .

Wall Street Crosses Memory Lane : How Witnessed Returns Affect Professionals' Expected Returns. / Hoffmann, Arvid O. I.; Iliewa, Zwetelina; Jaroszek, Lena.

2017. Afhandling præsenteret på The 15th International Paris December Finance Meeting, Paris, Frankrig.

Publikation: KonferencebidragPaperForskningpeer review

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Hoffmann AOI, Iliewa Z, Jaroszek L. Wall Street Crosses Memory Lane: How Witnessed Returns Affect Professionals' Expected Returns. 2017. Afhandling præsenteret på The 15th International Paris December Finance Meeting, Paris, Frankrig.