Contact Us

+98 913 264 4310

+98 912 849 1734


+98 912 849 1734 (Virtual Fax)


Borna Sanjesh Kimia Company
No. 164, Ataei Street, Jeyhoun Street, Azadi

Think of Both Price and Return to Mitigate Framing Effect on Forecast (working paper)


Received: 20 October 2021
Revised: 21 November 2021
Accepted: 19 December 2021

Ardalan Eyni

  Download Full Text


Literature suggests the existence of framing effect throughout decision-makers when forecasting stock price vs stock return, thereby making estimates of price and return heterogeneous, although these two values must be equivalent representing each other. However, the solution to the mentioned anomaly is understudied. In our experiment, we try to shrink the effect down by suggesting the treatment group jointly forecast price and return. We compare their forecasts with those who are subject to forecast either price or return only (control groups). Results hypothetically confirm that the jointly estimated price and return by the treatment group are significantly equivalent - though not necessarily mathematically equal – while the separately estimated price and return by control groups significantly deviate from each other. Therefore, results hypothetically, economically confirm that the joint forecasts lie somewhere in between the two separate forecasts.

Keywords: Framing Effect, Return, Price, Forecast, Solution.

  Download Full Text

Related Content

To submit your paper, please register first by clicking on the registration button. You will then be able to upload your paper within the control panel(cpanel)

Publication Information

Journal of Practical Auditing and Accounting

ISSN: 2783-2902

Rose Scientific Publication
Melbourne, Australia

Director In-charge:
Seyed Mojtaba Mostafavi, Ph.D.

James Smith, Ph.D.

Executive Manager
Mehrdad Fallahi Barzoki, Ph.D.

Rosepub - Journal management system