The anatomy of the disposition effect: Which factors are most important?
Sign Up to like & getrecommendations! Published in 2021 at "Finance Research Letters"
DOI: 10.1016/j.frl.2021.102040
Abstract: Abstract This study analyzes the complete trading records, as well as the detailed individual-level survey responses of 76,172 retail investors to examine the relative importance of many factors that are associated with the disposition effect,… read more here.
Keywords: effect factors; anatomy disposition; disposition effect; anatomy ... See more keywords
Short-term contrarian profits and the disposition effect
Sign Up to like & getrecommendations! Published in 2021 at "Finance Research Letters"
DOI: 10.1016/j.frl.2021.102380
Abstract: Abstract This article investigates the role of the disposition effect — the tendency of investors to sell stocks with paper gains early but hold stocks with paper losses for longer — in driving stock price… read more here.
Keywords: disposition effect; short term; term contrarian; contrarian profits ... See more keywords
Exchange-traded certificates, education and the disposition effect
Sign Up to like & getrecommendations! Published in 2021 at "Journal of Behavioral and Experimental Finance"
DOI: 10.1016/j.jbef.2020.100456
Abstract: Abstract This study establishes a link between the disposition effect present in the transactions of exchange-trade certificates (ETC), investor education and different dimensions of trading experience. Using transaction-level data of 35,508 individuals from a major… read more here.
Keywords: disposition; disposition effect; exchange; education ... See more keywords
Disposition effect in fund managers. Fund and stock-specific factors and the upshot for investors
Sign Up to like & getrecommendations! Published in 2020 at "Journal of Economic Behavior and Organization"
DOI: 10.1016/j.jebo.2020.04.002
Abstract: Abstract This paper evaluates the presence of disposition effect in Spanish equity funds and its implications for investors. We find that disposition spread is not a widespread bias, but it exists across funds. This effect… read more here.
Keywords: effect; effect fund; disposition effect; fund managers ... See more keywords
Disposition Effect and Diminishing Sensitivity: An Analysis Based on a Simulated Experimental Stock Market
Sign Up to like & getrecommendations! Published in 2017 at "Journal of Behavioral Finance"
DOI: 10.1080/15427560.2017.1308941
Abstract: ABSTRACT The authors experimentally investigate the existence of the disposition effect and its relationship with diminishing sensitivity. Their approach includes 3 key characteristics: (i) an environment closely resembling actual stock markets, (ii) individual-specific reference prices,… read more here.
Keywords: disposition effect; disposition; diminishing sensitivity; stock ... See more keywords
Can prospect theory explain the disposition effect? An analysis based on value function
Sign Up to like & getrecommendations! Published in 2017 at "China Finance Review International"
DOI: 10.1108/cfri-04-2017-0032
Abstract: Purpose The prospect theory is potentially an essential ingredient in modeling the disposition effect. However, many scholars have tried to explain the disposition effect with the help of prospect theory and they came to opposite… read more here.
Keywords: value function; disposition effect; value;
Personality traits as predictor of cognitive biases: moderating role of risk-attitude
Sign Up to like & getrecommendations! Published in 2020 at "Qualitative Research in Financial Markets"
DOI: 10.1108/qrfm-10-2019-0123
Abstract: This study aims to examine that personality traits are associated with the investor’s ability to exhibit disposition effect, herding behavior and overconfidence. It also explores how risk-attitude can modify investor behavior by moderating the association… read more here.
Keywords: overconfidence; effect herding; personality traits; disposition effect ... See more keywords
Disposition effect and reference points: An experimental study
Sign Up to like & getrecommendations! Published in 2023 at "PLOS ONE"
DOI: 10.1371/journal.pone.0284171
Abstract: This study calls into question the default computation of the disposition effect that uses the average purchase price as a reference point. We show, through a lab experiment, that the reference price of participants can… read more here.
Keywords: reference; disposition effect; study; price ... See more keywords
When the disposition effect proves to be rational: Experimental evidence from professional traders
Sign Up to like & getrecommendations! Published in 2023 at "Frontiers in Psychology"
DOI: 10.3389/fpsyg.2023.1091922
Abstract: The disposition effect is a behavioural finance anomaly that has been observed in many populations including non-professional investors as well as professional investors and has been linked to reduced trading performance. However, the majority of… read more here.
Keywords: non mean; effect; reverting securities; disposition effect ... See more keywords