Chapter 12. A Model of Investor Sentiment

Chapters in this book

1. Frontmatter i
2. Contents vii
3. Preface xi
4. Acknowledgments xix
5. List of Abbreviations xxiii
6. Chapter1. A Survey of Behavioral Finance 1
7. Part I. Limits to Arbitrage
8. Chapter 2. The Limits of Arbitrage 79
9. Chapter 3. How Are Stock Prices Affected by the Location of Trade? 102
10. Chapter 4. Can the Market Add and Subtract? Mispricing in Tech Stock Carve-outs 130
11. Part II. Stock Returns and the Equity Premium
12. Chapter 5. Valuation Ratios and the Long-run Stock Market Outlook: An Update 173
13. Chapter 6. Myopic Loss Aversion and the Equity Premium Puzzle 202
14. Chapter 7. Prospect Theory and Asset Prices 224
15. Part III. Empirical Studies of Overreaction and Underreaction
16. Chapter 8. Contrarian Investment, Extrapolation, and Risk 273
17. Chapter 9. Evidence on the Characteristics of Cross-sectional Variation in Stock Returns 317
18. Chapter 10. Momentum 353
19. Chapter 11. Market Efficiency and Biases in Brokerage Recommendations 389
20. Part IV. Theories of Overreaction and Underreaction
21. Chapter 12. A Model of Investor Sentiment 423
22. Chapter 13. Investor Psychology and Security Market Under- and Overreaction 460
23. Chapter 14. A Unified Theory of Underreaction, Momentum Trading, and Overreaction in Asset Markets 502
24. Part V. Investor Behavior
25. Chapter 15. Individual Investors 543
26. Chapter 16. Naive Diversification Strategies in Defined Contribution Savings Plans 570
27. Part VI. Corporate Finance
28. Chapter 17. Rational Capital Budgeting in an Irrational World 605
29. Chapter 18. Earnings Management to Exceed Thresholds 633
30. Chapter 19. Managerial Optimism and Corporate Finance 667
31. List of Contributors 685