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Regret sensitivity and stock certificate loss reporting: Evidence from Taiwan

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  • Yang, Ann Shawing

Abstract

We study the effect of regret on decision-making through stock certificate loss reporting. We adopt the quantile regression method and use regret theory for the study period 2008–2021. Qualified foreign institutional investors show decreasing buy- and sell-side regret from low to high quantiles contrary to dealers. Investment trust companies show sell-side regret at high quantiles. Investor name identification exerts the most negative regret between 0.9% and 1.6% from low to high quantiles, followed by Thursdays’ loss reporting and southern-based companies. The non-disclosure of lost stocks volumes exerts the most positive regret between 0.4% and 1.9% in low- and mid-quantiles.

Suggested Citation

  • Yang, Ann Shawing, 2023. "Regret sensitivity and stock certificate loss reporting: Evidence from Taiwan," Finance Research Letters, Elsevier, vol. 58(PA).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323004026
    DOI: 10.1016/j.frl.2023.104030
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    Cited by:

    1. Sabino, Emerson Rodrigues & Rêgo, Leandro Chaves, 2024. "Minimax regret stability in the graph model for conflict resolution," European Journal of Operational Research, Elsevier, vol. 314(3), pages 1087-1097.

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    More about this item

    Keywords

    Stock certificate lost reporting; Regret sensitivity; Regret theory; Quantile regression method;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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