Did investors learn from the stock market crisis?
Date Issued
2009
Date
2009
Author(s)
Lu, Yu-Ting
Abstract
The Taiwan stock market crashed in May 2008, and caused lots of investors cry for the extreme lose of money. However, history repeats himself. The same scenario happened in April 2000.This paper asks: Did the investors who have the same experiences in 2000 tech bubble learn from the last crisis? Do they really act more reasonably than those who have no experiences?There are three main hypotheses and results from this paper. First, we expected those who have the experiences of the stock market crisis would learn from that, so the disposition effect of the experienced investors will be smaller than those who have no experiences. The empirical result supports this idea. Second, through many evidences from the literature, we supposed and got the results that those who traded more frequently have less disposition effects. Third, we found that those who had the positive return in 2000 are prone to have the strong disposition effect than those who had negative return.
Subjects
Learning
Disposition
Cox proportional hazard model
Type
thesis
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