@article{ART003294374},
author={Mincheol Woo and Meong Ae Kim},
title={A cognitive bias in Korean Stock Market : In the stocks with short-term price increase},
journal={Asset Management Review},
issn={2288-6672},
year={2025},
volume={13},
number={2},
pages={19-42}
TY - JOUR
AU - Mincheol Woo
AU - Meong Ae Kim
TI - A cognitive bias in Korean Stock Market : In the stocks with short-term price increase
JO - Asset Management Review
PY - 2025
VL - 13
IS - 2
PB - Institute of Management Research, SungKyunKwan University
SP - 19
EP - 42
SN - 2288-6672
AB - This study investigates cognitive bias cases in stock whose prices have risen in the short term in the korean stock market. Stocks that reached or exceeded round number price levels exhibited relatively higher intraday volatility, greater short sales, and lower daily returns. These findings suggest that there exists in the market a considerable number of investors who perceive round numbers as reference points for decision-making and execute trades accordingly. Furthermore, it implies that investors interpret the reaching or exceeding round number prices as a signal of overvaluation for the stock. Consistent results were observed in regression analyses that controlled for the effect of other stock characteristics. In addition, regression analysis controlling for the relationship between round numbers and short sale activities showed that the event of reaching or exceeding round number prices still had a significant negative effect on daily returns. In line with the prior research indicating that psychologically biased investors make decisions based on the profit or loss calculated by purchase prices, our findings suggest that reaching or exceeding round number prices triggers trading execution by investors with a tendency for early disposition.
KW - cognitive bias;reference point;left-digit effect;threshold trigger effect;disposition;effect
DO -
UR -
ER -
Mincheol Woo and Meong Ae Kim. (2025). A cognitive bias in Korean Stock Market : In the stocks with short-term price increase. Asset Management Review, 13(2), 19-42.
Mincheol Woo and Meong Ae Kim. 2025, "A cognitive bias in Korean Stock Market : In the stocks with short-term price increase", Asset Management Review, vol.13, no.2 pp.19-42.
Mincheol Woo, Meong Ae Kim "A cognitive bias in Korean Stock Market : In the stocks with short-term price increase" Asset Management Review 13.2 pp.19-42 (2025) : 19.
Mincheol Woo, Meong Ae Kim. A cognitive bias in Korean Stock Market : In the stocks with short-term price increase. 2025; 13(2), 19-42.
Mincheol Woo and Meong Ae Kim. "A cognitive bias in Korean Stock Market : In the stocks with short-term price increase" Asset Management Review 13, no.2 (2025) : 19-42.
Mincheol Woo; Meong Ae Kim. A cognitive bias in Korean Stock Market : In the stocks with short-term price increase. Asset Management Review, 13(2), 19-42.
Mincheol Woo; Meong Ae Kim. A cognitive bias in Korean Stock Market : In the stocks with short-term price increase. Asset Management Review. 2025; 13(2) 19-42.
Mincheol Woo, Meong Ae Kim. A cognitive bias in Korean Stock Market : In the stocks with short-term price increase. 2025; 13(2), 19-42.
Mincheol Woo and Meong Ae Kim. "A cognitive bias in Korean Stock Market : In the stocks with short-term price increase" Asset Management Review 13, no.2 (2025) : 19-42.
