An Empirical Inquiry into Psychological Heuristics in the Context of the Korean Distribution Industry within the Stock Market

• 영문명: An Empirical Inquiry into Psychological Heuristics in the Context of the Korean Distribution Industry within the Stock Market
• 발행기관: 한국유통과학회
• 저자명: Jeong-Hwan LEE Se-Jun LEE Sam-Ho SON
• 간행물 정보: 『유통과학연구(JDS)』제21권 제9호, 103~114쪽, 전체 12쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2023.09.30

영문 초록

Purpose: This paper aims to assess psychological heuristics’ effectiveness on cumulative returns after significant stock price changes. Specifically, it compares availability and anchoring heuristics’ empirical validity due to conflicting stock return predictions. Research Design, Data, and Methodology: This paper analyzes stock price changes of Korean distribution industry stocks in the KOSPI market from January 2004 to July 2022, where daily fluctuations exceed 10%. It evaluates availability heuristics using daily KOSPI index changes and tests anchoring heuristics using 52-week high and low stock prices as reference points. Results: As a result of the empirical analysis, stock price reversals did not consistently appear alongside changes in the daily KOSPI index. By contrast, stock price drifts consistently appeared around the 52-week highest stock price and 52-week lowest stock price. The result of the multiple regression analysis which controlled for both company-specific and event-specific variables supported the anchoring heuristics. Conclusions: For stocks related to the Korean distribution industry in the KOSPI market, the anchoring heuristics theory provides a consistent explanation for stock returns after large-scale stock price fluctuations that initially appear to be random movements.

목차

1. Introduction

2. Literature Review

3. Research Hypothesis

4. Data Description and Research Design

5. Results and Discussion

6. Conclusions

References

키워드

Availability Heuristics Anchoring Heuristics Drifts Large-Price Change Korean Distribution Industry