Stock return ignorance

Subjective Return Expectations, Perceptions, and Portfolio Choice

“…They are also more likely to be high income earners and to be wealthier, and display more optimistic beliefs about future returns (ER), albeit perceiving a higher associated risk, as measured by the standard deviation of expected returns (Sd ER). Finally, households in our estimation sample appear more aware about realized returns (PR) albeit less confident (Sd PR): the last two columns of Table 1 compare estimation sample statistics for respondents ('NR(PR) = 0') versus non-respondents ('NR(PR) = 1') to the perception questions about realised cumulative returns: the latter appear less likely to be stockholders and invest lower shares of their financial wealth in stocks conditional on participating, in line with results reported by Merkoulova and Veld (2021) for US households. Notes: This table reports descriptive statistics for the overall sample of 3826 respondents to the 2007 TNS survey wave (cols.…”

“…To gain further insight into how do agents make financial decisions, renewed research effort has been undertaken theoretically (e.g., Pástor andVeronesi 2009, or Van Nieuwerburgh andVeldkamp 2010;reviewed in Brandt 2010), empirically (e.g., Fagereng et al 2017) and more recently, experimentally (e.g., Kuhnen 2015), both within and across countries (e.g., Badarinza et al 2016). Empirically, survey data have been exploited for (i) professional forecasters (e.g., Nagel 2011, Malmendier andNagel 2016;Amromin and Sharpe 2013;Bordalo et al 2018); (ii) stock market investors (e.g., Vissing-Jorgensen 2004), for (iii) specific population subgroups, including non-stockholders (by age, Manski 2007, Dominitz andManski 2011;Kézdi and Willis 2009); for (iv) brokerage account holders (e.g., Ameriks et al 2020;Giglio et al 2021); or for (v) a representative sample of the population by age and wealth (e.g., Hurd et al 2011, Miniaci and Pastorello 2010or Merkoulova and Veld 2021. Here, we exploit unique data from a new wave of the Taylor Nelson Sofres French survey (TNS 2007), which contains information on attitudes, preferences, subjective expectations, perceptions, and socioeconomic and demographic characteristics for a representative sample of 3826 households, by age, wealth, and asset classes (Campbell 2006).…”

“…Evidence in support of misperceptions about facts driving beliefs about the future has been found for professional forecasters', Andrade and Le Bihan (2013), firms', Coibion et al (2018), and consumers' (Jonung and Laidler 1988;Armantier et al 2016;Armona et al 2019) beliefs about inflation, as postulated by models of imperfect information (e.g., Woodford 2013) or of rational inattention (Sims 2003;Reis 2006;Alvarez et al 2012;Abel et al 2007 or Abel et al 2013). Recent empirical evidence on 'stock return ignorance' driving US household decisions to invest in stocks has been advanced by Merkoulova and Veld (2021). The crucial role of heterogeneous subjective beliefs for disciplining heterogeneous agent models and understanding the macroeconomy has been advocated, among others, by Carroll (2017) or Manski (2018).…”

The fear of missing out on cryptocurrency and stock investments: Direct and indirect effects of financial literacy and risk tolerance

“…11 Lower financial literacy has been proposed as an explanation for lower female stock ownership rates (Almenberg and Dreber 2015;Bucher-Koenen et al 2017;Lusardi and Mitchell 2014). Bucher-Koenen et al (2021) and Cupák et al (2021) argue a combination of low financial literacy and self-confidence, explains a large part of the gender gap, while Merkoulova and Veld (2022) find (ignorance) of expected stock returns is a significant part of gender differences in stock investing. Bannier et al (2019) report a gender gap in "Bitcoin literacy" but do not consider its role in crypto ownership.…”

Dampak Current Ratio Dan Debt To Equity Ratio Pada Return Saham Dimoderasi Return On Assets

“…Investasi pISSN 2549-3086 eISSN 2657-1676 https://ejournal.stiesyariahbengkalis.ac.id/index.php/jas adalah suatu kegiatan pemindahan suatu dana berupa aset dalam kurun waktu tertentu untuk mendapatkan penghasilan atau peningkatan atas investasi tersebut dengan tujuan meningkatkan kesejahteraan investor kelak. Return saham ini ada dua jenis yaitu return ekspektasi (sangat krusial dan dibutuhkan untuk mengukur performa suatu perusahaan lantaran digunakan sebagai dasar untuk menentukan return dan risiko dimasa depan) dan return realisasi (yang direalisasikan dan dihitung dengn dasar historis) (Merkoulova and Veld 2022). Return saham memiliki dua bagian yaitu current income (laba dari pembayaran yang sifatnya periodik dengan bentuk deviden hasil kinerja fundamental badan usaha) dan keuntungan atas perbedaan antara harga jual dan beli saham, yang dinilai positif apabila harga jualnya lebih tinggi dari pada pembeliannya (Eisenhardt 1989;Tandelilin 2010;Jogiyanto 2017).…”