Prospect theory and narrow framing bias: Evidence from emerging markets

•We analyze the narrow framing bias in investment decisions in emerging countries.•We empirically identify the predictive power of prospect theory for stock returns.•The probability weighting function is the most critical factor.•The relationship is different depending on the country.•Cultural facto...

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Bibliographic Details

Published in:	The Quarterly review of economics and finance Vol. 80; pp. 90 - 101
Main Authors:	do Nascimento Junior, Arnaldo João, Klotzle, Marcelo Cabus, Brandão, Luiz Eduardo T., Pinto, Antonio Carlos Figueiredo
Format:	Journal Article
Language:	English
Published:	Elsevier Inc 01-05-2021 Elsevier Advanced Technology Publications
Subjects:	Business schools Developing countries Emerging markets Narrow framing bias Probability weighting function Prospect theory Stock returns Prospect theory G41 G11 Emerging markets G12 Stock returns Probability weighting function Narrow framing bias
Online Access:	Get full text
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