Are Investors Really Reluctant to Realize their Losses? Trading Responses to Past Returns and the Disposition Effect

By Itzhak Ben-David, David A. Hirshleifer. 2012

307 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/820cf28afb8e26128cbbddf5169176fcb495f059

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Citations in the corpus

Looking for Someone to Blame: Delegation, Cognitive Dissonance, and the Disposition Effect (2014, unknown): “Both Ben-David and Hirshleifer (2012) and Kaustia (2010b) report that the propensity to sell is not flat across the domain of gains and losses, while Linnainmaa (2010) points out that sell limit orders can mechanically generate " a trading pattern that is observationally equivalent to the…”
Realization Utility with Reference-Dependent Preferences (2013, unknown): “In a recent paper, Ben-David and Hirshleifer (2012) examine various holding periods and document V-shape empirical patterns between the probability of selling a stock and the unrealized return since its purchase. Using the statistics developed in Proposition 5 for heterogeneous investors, our model ”
Reference-Dependent Preferences and the Risk-Return Trade-Off (2017, background): “The V-shaped disposition effect is a refined version of the disposition effect: Ben-David and Hirshleifer (2012) find that investors are more likely to sell a security when the magnitude of their gains or losses on this security increase, and their selling schedule, characterized by a V shape, has…”
Does it Pay to Invest in Art? A Selection-Corrected Returns Perspective (2013, background): “…estate (e.g., Genesove and Mayer, 2001), public equities (e.g., Shefrin and Statman, 1985, Odean, 1998, Grinblatt and Keloharju, 2001, Frazzini, 2006, and Ben-David and Hirshleifer, 2012), executive stock options (Heath, Huddart, and Lang, 1999), and online gambling (Hartzmark and Solomon, 2012).”
Gold, Oil, and Stocks: Dynamic Correlations (2016, unknown): “Finally, the lack of cointegration is in linewith a lack of economic linkages 13 The importance of investors' beliefs and how they act on them has been recently shown by Ben-David and Hirshleifer (2012).”
The Impact of Salience on Investor Behavior: Evidence from a Natural Experiment (2019, unknown): “X is a vector of control variables, including all the control variables in Ben-David and Hirshleifer (2012), the interaction terms between Interneti and Dq, and between NonInterneti and Dq.”
The Worst, the Best, Ignoring All the Rest: The Rank Effect and Trading Behavior (2015, methodology): “…a dummy variable Sell, equal to one if a stock is sold and zero otherwise, is regressed on variables for rank and a number of controls taken from Ben-David and Hirshleifer (2012) and listed in Equation 1: 12 ( ) ( ) ( ) ( ) ( √ ) ( √ ) (√ ) ( ) ( ) (1) Rank Variables represents the various…”