https://scholars.lib.ntu.edu.tw/handle/123456789/414550
Title: | Are Taiwanese individual investors reluctant to realize their losses? | Authors: | Shu, Pei Gi Yeh, Yin Hua SHEAN-BII CHIU Chen, Hsuan Chi |
Keywords: | Disposition effect | Individual investors | Investor characteristics | Issue Date: | 1-Mar-2005 | Journal Volume: | 13 | Journal Issue: | 2 | Start page/Pages: | 201 | Source: | Pacific Basin Finance Journal | Abstract: | Taiwanese investors exhibit a stronger disposition effect than US investors. On average, the proportion for realizing gains is 2.5 times that for realizing losses. The corresponding multiple for the US investors is 1.5 [Odean, T., 1998. Are investors reluctant to realize their losses? Journal of Finance 53, 1775-1798.]. The cultural difference between the Ease and the West could partly explain this phenomenon, i.e., Taiwanese investors have stronger beliefs in mean reversion than US investors. However, investors' belief formation is not obviously reinforced by their experiences from the stock market. Analysis at the stock characteristic level finds that investors trading stocks in high-return/low-price categories and in low-return/high-price categories exhibit the reverse disposition effect. The disposition effects at the individual level shows that aged female investors are more finclined to asymmetrically deal with their gains than losses. By contrast, the investors with margin trading are less likely to exhibit the disposition effect. © 2004 Elsevier B.V. All rights reserved. |
URI: | https://scholars.lib.ntu.edu.tw/handle/123456789/414550 | ISSN: | 0927538X | DOI: | https://api.elsevier.com/content/abstract/scopus_id/14844296990 10.1016/j.pacfin.2004.08.001 |
Appears in Collections: | 財務金融學系 |
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