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Traders, managers and loss aversion in investment banking: a field study

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  • Willman, Paul
  • Fenton-O'Creevy, Mark
  • Nicholson, Nigel
  • Soane, Emma

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  • Willman, Paul & Fenton-O'Creevy, Mark & Nicholson, Nigel & Soane, Emma, 2002. "Traders, managers and loss aversion in investment banking: a field study," Accounting, Organizations and Society, Elsevier, vol. 27(1-2), pages 85-98.
    • Handle: RePEc:eee:aosoci:v:27:y:2002:i:1-2:p:85-98
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    References listed on IDEAS

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    1. Dow, James & Gorton, Gary, 1997. "Noise Trading, Delegated Portfolio Management, and Economic Welfare," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 1024-1050, October.
    2. Bank of England, 1997. "A Risk Based Approach to Supervision (the RATE framework)," Consultative Papers _006, Bank of England.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Richard H. Thaler & Eric J. Johnson, 1990. "Gambling with the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice," Management Science, INFORMS, vol. 36(6), pages 643-660, June.
    5. Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, vol. 59(4), pages 251-278, October.
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    Cited by:

    1. Grandi, Pietro & Guille, Marianne, 2023. "Banks, deposit rigidity and negative rates," Journal of International Money and Finance, Elsevier, vol. 133(C).
    2. Adam Butt & M. Scott Donald & F. Douglas Foster & Susan Thorp & Geoffrey J. Warren & Tom Smith, 2017. "Design of MySuper default funds: influences and outcomes," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(1), pages 47-85, March.
    3. Inesi, M. Ena, 2010. "Power and loss aversion," Organizational Behavior and Human Decision Processes, Elsevier, vol. 112(1), pages 58-69, May.
    4. Mr. Gee Hee Hong & John Kandrac, 2018. "Pushed Past the Limit? How Japanese Banks Reacted to Negative Interest Rates," IMF Working Papers 2018/131, International Monetary Fund.
    5. Leaver, Meghan & Reader, Tom W., 2016. "Human factors in financial trading: an analysis of trading incidents," LSE Research Online Documents on Economics 66307, London School of Economics and Political Science, LSE Library.
    6. Joo, M. Hashemi & Parhizgari, A.M., 2021. "A behavioral explanation of credit ratings and leverage adjustments," Journal of Behavioral and Experimental Finance, Elsevier, vol. 29(C).
    7. Pascual-Ezama, David & Paredes, Mercedes Rodríguez & Sanchez-Martín, María-del-Pilar & de Liaño, Beatriz Gil-Gómez, 2018. "Shorter and easier is more useful: A longitudinal analysis of how financial report enforcement affects individual investors," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 74(C), pages 29-37.
    8. Huang, Jia & Chen, Zheng, 2021. "Optimal risk asset allocation of a loss-averse bank with partial information under inflation risk," Finance Research Letters, Elsevier, vol. 38(C).
    9. Lim, Chu Yeong & Woods, Margaret & Humphrey, Christopher & Seow, Jean Lin, 2017. "The paradoxes of risk management in the banking sector," The British Accounting Review, Elsevier, vol. 49(1), pages 75-90.
    10. Beaver, William & McNichols, Maureen & Price, Richard, 2016. "The costs and benefits of long-short investing: A perspective on the market efficiency literature," Journal of Accounting Literature, Elsevier, vol. 37(C), pages 1-18.
    11. Olapeju Comfort Ogunmokun & Oluwasoye P. Mafimisebi & Demola Obembe, 2023. "Prospect theory and bank credit risk decision-making behaviour: a systematic literature review and future research agenda," SN Business & Economics, Springer, vol. 3(4), pages 1-25, April.

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