Up Close and Personal: An Individual Level Analysis of the Disposition Effect

By Ravi K. Dhar, Ning Zhu. 2002

231 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, General Decision Sciences

View Paper: https://www.semanticscholar.org/paper/7e876d69a1a698dc2a2ef9fc69a1aef0d34cc502

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Citations in the corpus

Do Older Investors Make Better Investment Decisions? (2011, background): “Investors might also be less prone to behavioral biases as they grow older and become more experienced (List, 2003; Feng & Seasholes, 2005; Dhar & Zhu, 2006; Goetzmann & Kumar, 2008).”
The Local Bias of Individual Investors (2002, unknown): “Consistent with previous findings (Dhar and Zhu, 2002), more sophisticated individuals, in particular those who are wealthy and work in professional occupations, show significantly smaller local bias.”
Talk and Action: What Individual Investors Say and What They Do (2005, unknown): “…attributes such as income or occupational choice are less prone to underdiversify (see Goetzmann and Kumar (2002)), hang on to losers and sell winners (also known as the disposition effect; see Odean (1998a) and Dhar and Zhu (2002)), and make locally biased investments (see Zhu (2002)).”
What Drives the Disposition Effect? An Analysis of a Long-Standing Preference-Based Explanation (2009, unknown): “First, the carriers of value in prospect theory are gains and losses, not final wealth levels: the argument of v(·) in (6) is x, not W + x.”
Will Women be Women? Analyzing the Gender Difference Among Financial Experts (2008, unknown): “Graham (1999) finds that risk aversion decreases with experience of analysts (cf. Clement andTse, 2005), which is tentatively confirmed byMenkhoff et al. (2006) for fund managers and by Dhar and Zhu (2006) for individual investors.”
Do Investors Overweight Personal Experience? Evidence from IPO Subscriptions (2008, background): “Recent research suggests that more experienced investors make fewer behavioral errors and use more sophisticated trading tactics (Feng and Seasholes, 2005; Dhar and Zhu, 2006; Korniotis and Kumar, 2006; Seru et al., 2006).”
Investor Overconfidence and Trading Volume (2006, background): “the disposition effect (e.g., Odean (1998b), Ranguelova (2001), and Dhar and Zhu (2002) )”
Is the Aggregate Investor Reluctant to Realise Losses? Evidence from Taiwan (2007, unknown): “Using the same dataset, Dhar and Zhu (2006) document that the disposition effect is stronger for less sophisticated investors.”
Do Investors Learn from Experience? Evidence from Frequent IPO Investors (2011, background): “Consistent with the rational-learning hypothesis, Feng and Seasholes (2005) and Dhar and Zhu (2006) find that investors' trading ex perience reduces the behavioral bias of the disposition effect.”
Prospect Theory and the Disposition Effect (2008, background): “Dhar and Zhu (2006) show that certain investor characteristics reliably predict the tendency to engage in this behavior.”
Do Investor Sophistication and Trading Experience Eliminate Behavioral Biases in Financial Markets (2005, unknown): “So as not to impose a functional form on the measure of trading experience, we group an investor’s trading life into the first five trades [1, 5], the next five trades [6, 10], and so on.”