Up Close and Personal: Investor Sophistication and the Disposition Effect

By Ravi K. Dhar, Ning Zhu. Management Sciences, 2006

720 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, General Decision Sciences

View Paper: https://www.semanticscholar.org/paper/80eed3cb01d09a271ce88cbe84c6ba88902494cb

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Citations in the corpus

Institutional Investors, Past Performance, and Dynamic Loss Aversion (2009, background): “According to Barber and Odean (2000) and Dhar and Zhu (2006), older and more experienced retail investors are less overconfident than their younger and less seasoned counterparts.”
Financial literacy, financial advice, and financial behavior (2017, methodology): “Similarly, Disney et al. (2015) recently analyze the decision of indebted consumers in the U.”
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.”
Individual Investors and Local Bias (2010, neutral): “5 See Barber and Odean (2000, 2001, 2002); Barber, Odean, and Zhu (2009); Dhar and Zhu (2006); Goetzmann and Kumar (2008); Graham and Kumar (2006); Ivkovic, Poterba, and Weisbenner (2005); Ivkovic and Weisbenner (2005); Kumar (2004, 2008a, 2008b); Kumar and Lee (2006); Kumar and Lim (2008); and…”
Zero-Commission Individual Investors, High Frequency Traders, and Stock Market Quality (2021, neutral): “Research suggests that young investors are less financially literate (Van Rooij, Lusardi, and Alessie, 2011) and more prone to behavioral mistakes (Goetzmann and Kumar, 2008; Dhar and Zhu, 2006).”
The disposition effect and investor experience (2013, methodology): “The other measure is that of Dhar and Zhu (2006): DEi ¼ Nigr Nilr Nigp Nilp ð6Þ”
The Impact of Salience on Investor Behavior: Evidence from a Natural Experiment (2019, result): “However, previous research shows that there is a large amount of heterogeneity in the disposition effect across investors (Dhar and Zhu 2006), and thus it may be that our results are driven by a small number of investors with large portfolios.”
Fight or Flight? Portfolio Rebalancing by Individual Investors (2009, positive): “This allows us to extend the recent nding of Dhar and Zhu (2006) that households with higher self-reported income are less prone to the disposition e!ect.”
Will Women be Women? Analyzing the Gender Difference Among Financial Experts (2008, background): “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 exhibit behavioral biases in investment decision making? A systematic review (2018, background): “It was described by Dickens (1978). People generally have a preconceived impression of something and they rely on this information.”
Measuring the Financial Sophistication of Households (2009, positive): “…reason, we proxy inertia by: yh;t;2 D j ln.wh;tC1/ ln.wh;t /j; that is by the absolute value of risky share changes in logs As in Odean (1998) and Dhar and Zhu (2006), our analysis of the disposition effect builds on the propor- tion of stock gains realized during the year, PGRh;t ; and the…”