Attention and Biases: Evidence from Tax-Inattentive Investors

• 成果类型: Article
• 署名作者: Birru, Justin; Chague, Fernando; De-Losso, Rodrigo; Giovannetti, Bruno
• 署名单位: University System of Ohio; Ohio State University; Getulio Vargas Foundation; Universidade de Sao Paulo
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.02516
• 发表日期: 2024
• 页码: 7101-7119
• 关键词: Retail investors; behavioral inattention; Trading performance; Behavioral biases; heuristics; financial mistakes

摘要

We first provide evidence of investor inattention to a very simple and well-known capital gains tax exemption in the Brazilian stock market. We then show that inattentive investors exhibit worse trading performance and stronger trading biases even after controlling for several investor-level variables, such as past trading experience. The evidence is consistent with inattention being one of the explanations for the prevalence of behavioral biases.