Interest Rate Adjustment and Underreaction: The Evidence from Experimental Study
Interest rate policy is getting more and more significant for investors nowadays, because of the drastic fluctuation in the economy recent years. With experiments, taking interest rate as the proxy variable, we confirmed the existence of investors underreaction to interest rate adjustment, and we found that this underreaction is influenced by investors previous profit and loss. Further more, we classified and discussed the underreaction by different types of investors and found that the investors with different risk preference differently in the effect on underreaction by previous profit and loss.
underreaction experiment house money effect risk aversion effect
LI Dongye FU Jie LI Pengfeng
School of Management, Dalian University of Technology, Dalian, China, 116024
国际会议
大连
英文
1-4
2009-06-29（万方平台首次上网日期，不代表论文的发表时间）