Regret sensitivity and stock certificate loss reporting: Evidence from Taiwan

We study the effect of regret on decision-making through stock certificate loss reporting. We adopt the quantile regression method and use regret theory for the study period 2008–2021. Qualified foreign institutional investors show decreasing buy- and sell-side regret from low to high quantiles contrary to dealers. Investment trust companies show sell-side regret at high quantiles. Investor name identification exerts the most negative regret between 0.9% and 1.6% from low to high quantiles, followed by Thursdays’ loss reporting and southern-based companies. The non-disclosure of lost stocks volumes exerts the most positive regret between 0.4% and 1.9% in low- and mid-quantiles.