When the disposition effect proves to be rational: Experimental evidence from professional traders [PDF]
Frontiers in Psychology, 2023 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 studies
Benno Guenther, Grace Lordan
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Could social interaction reduce the disposition effect? Evidence from retail investors in a directed social trading network. [PDF]
PLoS ONE, 2021 With data collected from a directed social trading network, this paper investigates how social interaction affects the disposition effect. We constantly observe a negative association between them: After being exposed to social interaction, a trader's ...
Xuejun Jin, Rui Li, Yu Zhu
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Psychophysiological correlates of the disposition effect. [PDF]
PLoS ONE, 2013 We assess the psychophysiological characteristics underlying the disposition effect and find that subjects showing greater disposition effect are those who sweat more and present lower body temperature and heart rate.
Marco Goulart +4 more
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Financial Self-Efficacy and Disposition Effect in Investors: The Mediating Role of Versatile Cognitive Style [PDF]
Frontiers in Psychology, 2019 The disposition effect refers to the tendency of investors to sell winners too early and hold on to losers too long, which is one of the most documented and robust decision biases. However, few studies have looked beyond demographic and social factors on
Song Tang +5 more
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Corporate transparency and the disposition effect [PDF]
Frontiers in PsychologyThe disposition effect describes investors’ irrational behavior of selling profitable assets too soon while holding onto losing assets for too long. This study examines the impact of transparency at the firm level on the disposition effect of individual ...
Siliu Chen, Fei Ren
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Transferring cognitive talent across domains to reduce the disposition effect in investment [PDF]
Sci Rep, 2021 We consider Theory of Mind (ToM), the ability to correctly predict the intentions of others. To an important degree, good ToM function requires abstraction from one’s own particular circumstances.
Kristian Rotaru +3 more
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Measuring the disposition effect [PDF]
Journal of Behavioral and Experimental Finance, 2020 Despite hundreds of papers confirming the existence of the disposition effect, too little attention has been devoted to the prevailing arguments on the choice of a given method to measure it.
Rudy de Winne
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Disposition effect, demographics and risk taking [PDF]
RAUSP Management Journal, 2021 Purpose – This study aims to investigate the association of demographic characteristics, market conditions and risk taking with the disposition effect using data on Brazilian individual investors.
Mariana Oreng +2 more
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Momentum and disposition effect in the US stock market
Cogent Economics & Finance, 2021 This paper examines whether momentum drives the disposition effect and vice versa in the US stock market. The results from the analysis of the Fama-Macbethregressions show that the disposition effect drives momentum but not the other way around ...
Ranjeeta Sadhwani, M. U. R. Bhayo
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Does social media information affect individual investor disposition effect? Evidence from Xueqiu. [PDF]
PLoS ONEThe irrational behavior of investors selling profitable assets too early while holding onto losing assets for too long is known as the disposition effect.
Siliu Chen, Fei Ren
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