Attention and Biases: Evidence from Tax-Inattentive Investors

Justin Birru, Fernando Chague, Rodrigo De-Losso and Bruno Giovannetti
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Justin Birru: Ohio State University (OSU) - Department of Finance

Working Paper Series from Ohio State University, Charles A. Dice Center for Research in Financial Economics

Abstract: We provide evidence of investor inattention to a very simple and well-known tax-exemption opportunity in the Brazilian stock market. Attentive and inattentive investors are similar along the dimensions of portfolio size and number of trades, but inattentive investors exhibit stronger behavioral biases and worse trading performance. The results hold even among high-activity investors who trade large volumes. The results are consistent with inattention being a common cause of behavioral biases.

JEL-codes: C93 D83 D91 G11 G12 G40 G41 H31 (search for similar items in EconPapers)
Date: 2019-09
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http://ssrn.com/abstract=3459478

Related works:
Working Paper: Attention and biases: evidence from tax-inattentive investors (2020)
Working Paper: Attention and Biases: Evidence from Tax-Inattentive Investors (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ecl:ohidic:2019-22

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