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Salience theory and stock prices: Empirical evidence

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1 Published in 2021 at "Journal of Financial Economics"

DOI: 10.1016/j.jfineco.2020.12.012

Abstract: Abstract We present evidence on the asset pricing implications of salience theory. In our model, investors overweight salient past returns when forming expectations about future returns. Consequently, investors are attracted to stocks with salient upsides,… read more here.

Keywords: theory stock; evidence; stock prices; salience theory ... See more keywords