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Healistics And Vieses In The Brazilian Share Market: The Effect Of The Judgment Process In A Scenario Of Risk And Uncertainty

Author

Listed:
  • Érika Regina da Silva

    (Pontifícia Universidade Católica de Campinas)

  • Mário Augusto Bertella

    (Universidade Estadual Paulista Júlio de Mesquita Filho)

Abstract

This work intends to contribute to the debate in economics and finance to conduct a study on the behavior of agents operating in the financial market. To this end it was made a simple estimation by ordinary least squares, whose method is partially extracted from Ferris et al. (1998), Huddart, Lang and Yetman (2006) and Borges (2007) and partly new by proposing to carry out a test with different parameters from those used by the authors mentioned above. The results suggest that the use of heuristics anchorage allows to occur overreaction – in order to generate impact on the financial market – to the extent that the results confirm a positive relationship among the variables: average past price, opening price and trading volume providing evidence that psychological and cognitive effects (behavioral bias) can generate “noise†in the financial market.

Suggested Citation

  • Érika Regina da Silva & Mário Augusto Bertella, 2017. "Healistics And Vieses In The Brazilian Share Market: The Effect Of The Judgment Process In A Scenario Of Risk And Uncertainty," Revista de Economia Mackenzie (REM), Mackenzie Presbyterian University, Social and Applied Sciences Center, vol. 14(2), pages 9-30, July-Dece.
    • Handle: RePEc:aft:journl:v:14:2:2017:jul:dec:p:9-30
    DOI: -
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