So & Zhang (2026) — Rejoicing, Regret and Stock Returns
Authors: Raymond H.Y. So, Xuanchen Zhang Venue: Journal of Banking and Finance 190 (2026) 107742 DOI: 10.1016/j.jbankfin.2026.107742 Timeline: Received 29 Sep 2025; Accepted 28 May 2026; Available online 3 June 2026
Introduces the DRR measure, showing that low-DRR (regret) stocks outperform high-DRR (rejoicing) stocks by 16.45% annually in the US. DRR subsumes the regret-only proxy of Arisoy et al. (2024). Extends to 44 international markets and shows DRR is stronger in high-individualism, high-uncertainty-avoidance, and weak-investor-protection countries.