Retail Investors’ Disposition Effect and Order Choices

2020 ◽  
Author(s):  
Rudy De Winne ◽  
Nhung Luong ◽  
Stefan Palan
Keyword(s):  
Disposition Effect ◽  
Retail Investors

scholarly journals Could social interaction reduce the disposition effect? Evidence from retail investors in a directed social trading network

PLoS ONE ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. e0246759
Author(s):  
Xuejun Jin ◽  
Rui Li ◽  
Yu Zhu
Keyword(s):  
Social Interaction ◽  
Negative Association ◽  
Disposition Effect ◽  
Quality Information ◽  
Positive Role ◽  
Retail Investors ◽  
Information Advantage ◽  
Trading Network ◽  
Reduction Of Uncertainty

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 odds ratio to sell a paper gain stock decreases by 9% to 10%, depending on different model settings. We then test the mechanisms of social interaction by decomposing it into three channels: learning intensity (willingness to learn), learning quality (information advantage through learning), and public scrutinization (exposure of trading outcome to others). We find that all three channels contribute to a smaller disposition effect. Specifically, our findings support the claim that public scrutinization promotes self-consciousness and reduces disposition effect. Also, our results extend previous studies on investors’ information advantage by suggesting that it could also help to mitigate the disposition effect through the reduction of uncertainty. Overall, this paper suggests a positive role of social trading platforms in helping investors make better decisions.

A Study of Risk Orientation of Retail investors in Indian Mutual fund Industry with special Reference to Rajasthan, India

2012 ◽  
Vol 3 (1) ◽  
pp. 3-6
Author(s):  
Dr Preeti Sharma ◽  
◽  
Dr D. N. Rao Dr D. N. Rao
Keyword(s):  
Special Reference ◽  
Mutual Fund ◽  
Retail Investors ◽  
Fund Industry ◽  
Mutual Fund Industry

The Aggregate Price Impact of the Disposition Effect

2008 ◽  
Author(s):  
Hyuk Choe ◽  
Yunsung Eom
Keyword(s):  
Price Impact ◽  
Disposition Effect

Winning Probability Dynamics and the Disposition Effect

2010 ◽  
Author(s):  
Adam Z.K. Wang
Keyword(s):  
Disposition Effect ◽  
Winning Probability

Can Unbiased Financial Advice Steer Retail Investors Towards Efficient Portfolios? Answers from a Large Field Study

2011 ◽  
Author(s):  
Utpal Bhattacharya ◽  
Andreas Hackethal ◽  
Simon Kaesler ◽  
Benjamin Loos ◽  
Steffen Meyer
Keyword(s):  
Field Study ◽  
Large Field ◽  
Financial Advice ◽  
Retail Investors ◽  
Efficient Portfolios
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