Purpose - The current study aims to investigate the impacts of two behavioral biases, namely, loss aversion and … overconfidence on the performance of US companies. First, the impact of loss aversion on the economic performance of companies was … study. Findings - It was documented that the loss-aversion bias negatively affects the economic performance of companies and …

two-asset problem of the PT investor for one risk-free and one risky asset and find that loss aversion and the reference … focus on investors with PT preferences under different scenarios regarding the reference return and the degree of loss … aversion and compare their portfolio performance with the performance of investors under CVaR, risk neutral, linear loss averse …

the loss aversion of a sponsor, who is assumed to be more sensitive to underfunding than overfunding. Through the lens of … prospect theory, we first set up a loss-aversion utility function for a sponsor whose utility depends on the funding ratio in … retirement. We also find that the equity portion of the portfolio increases when a sponsor is less loss-averse or the …

allocation for a sufficient loss averse worker depends on the reference level which in turn determines whether the worker is … willing to experience relative losses or not. When the reference level is relatively low then the sufficiently loss averse … worker will allocate some of her time to leisure and will hold both jobs in order to diversify risk and reduce income loss …