Evidence on the Presence of Representativeness Bias in Investor Interpretation of Consistency in Sales Growth

References

• Abarbanell JS, Bushee BJ (1997) Fundamental analysis, future earnings, and stock prices. J. Accounting Res. 35:1–24.Crossref, Google Scholar
• Abarbanell JS, Bushee BJ (1998) Abnormal returns to a fundamental analysis strategy. Accounting Rev. 73:19–45.Google Scholar
• Barberis N, Shleifer A, Vishny R (1998) A model of investor sentiment. J. Financial Econom. 49:307–343.Crossref, Google Scholar
• Chan W, Frankel R, Kothari SP (2004) Testing behavioral finance theories using trends and consistency in financial performance. J. Accounting Econom. 38:3–50.Crossref, Google Scholar
• Chen N-F, Roll R, Ross SA (1986) Economic forces and the stock market. J. Bus. 59:383–403.Crossref, Google Scholar
• Daniel K (2004). Discussion of: “Testing behavioral finance theories using trends and consistency in financial performance”. J. Accounting Econom. 38:51–64.Crossref, Google Scholar
• Daniel K, Titman S (2006) Market reactions to tangible and intangible information. J. Finance 61:1605–1643.Crossref, Google Scholar
• De Bondt WFM, Thaler R (1985) Does the stock-market overreact. J. Finance 40:793–805.Crossref, Google Scholar
• De Bondt WFM, Thaler R (1987) Further evidence on stock market overreaction and seasonality. J. Finance 42:557–581.Crossref, Google Scholar
• Easton P, McAnally ML, Fairfield P, Zhang X (2013) Financial Statement Analysis and Valuation (Cambridge Business Publishers, Westmont, IL).Google Scholar
• Fama E (1990) Stock returns, expected returns, and real activity. J. Finance 45:1089–1108.Crossref, Google Scholar
• Fama EF, MacBeth JD (1973) Risk, return, and equilibrium: Empirical tests. J. Political Econom. 81:607–636.Crossref, Google Scholar
• Gigerenzer G, Gaissmaier W (2011) Heuristic decision making. Ann. Rev. Psych. 62:451–482.Crossref, Google Scholar
• Grether D (1980) Bayes rule as a descriptive model: The representativeness heuristic. Quart. J. Econom. 95:537–557.Crossref, Google Scholar
• Jegadeesh N, Livnat J (2006) Revenue surprises and stock returns. J. Accounting Econom. 41:147–171.Crossref, Google Scholar
• Johnson WB (1983) Representativeness in judgmental predictions of corporate bankruptcy. Accounting Rev. 58:78–97.Google Scholar
• Kahneman DA, Tversky A (1972) Subjective probability: A judgment of representativeness. Cognitive Psych. 3:430–454.Crossref, Google Scholar
• Kahneman DA, Tversky A (1973) On the psychology of predictions. Psych. Rev. 80:237–251.Crossref, Google Scholar
• Lakonishok J, Shleifer A, Vishny R (1994) Contrarian investment, extrapolation, and risk. J. Finance 49:1541–1578.Crossref, Google Scholar
• La Porta R, Lakonishok J, Shleifer A, Vishny R (1997) Good news for value stocks: Further evidence on market efficiency. J. Finance 52:859–874.Crossref, Google Scholar
• Penman S (2007) Financial Statement Analysis, and Security Valuation, 3rd ed. (McGraw-Hill Irwin, New York).Google Scholar
• Petkova R (2006) Do the Fama–French factors proxy for innovations in predictive variables? J. Finance 61:581–612.Crossref, Google Scholar
• Piotroski JD (2000) Value investing: The use of historical financial statement information to separate winners from losers. J. Accounting Res. 38:1–41.Crossref, Google Scholar
• Piotroski JD, So EC (2012) Identifying expectation errors in value/glamour strategies: A fundamental analysis approach. Rev. Financial Stud. 25:2841–2875.Crossref, Google Scholar
• Tversky A, Kahneman D (1974) Judgment under uncertainty: Heuristics and biases. Science 185:1124–1131.Crossref, Google Scholar