The disposition effect and loss aversion: Do gender differences matter?

Rau, Holger A.

doi:10.1016/j.econlet.2014.01.020

Cited by 101 publications

(76 citation statements)

References 19 publications

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“…Yet the results confirm that the data is in line with previous findings. This is shown in the companion study of Rau (2014). 26 We find that the average loss aversion of individuals (2.14) and teams (1.89) is similar (Mann-Whitney test, p = 0.696).…”

Section: The Role Of Regret and Rejoicesupporting

confidence: 60%

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The disposition effect in team investment decisions: Experimental evidence

Rau

2015

Journal of Banking & Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may August 2015Abstract This paper experimentally studies the disposition effects of teams and individuals.The disposition effect describes the phenomenon that investors are reluctant to realize losses, whereas winners are sold too early. Our experiments compare the investments of two-person teams to a setting where investors trade alone. We find that subjects investing jointly exhibit more pronounced disposition effects than individuals. A closer look reveals that investor teams hardly realize losses and predominately sell winners. The data suggest that decision-dependent emotions may explain the differences. That is, teams reporting high levels of regret exhibit significantly higher disposition effects than individuals.JEL Classification numbers: C92, D70, G12.

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Section: The Role Of Regret and Rejoicesupporting

confidence: 60%

“…Moreover, studies analyzing gender differences find that disposition effects may differ between men and women. However, the results are inconclusive: Da Costa Jr et al (2008) report that the effect is more pronounced for men, whereas Rau (2014) finds the opposite.…”

Section: Experiments On the Disposition Effectmentioning

confidence: 53%

The disposition effect in team investment decisions: Experimental evidence

Rau

2015

Journal of Banking & Finance

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“…We focus our discussion on the results of model five. Similar to previous studies (Rau, 2014), we find that men suffer from the disposition effect to a lesser extent, and that the disposition effect appears to increase with age. We do not find that country economic conditions have an effect after we control for culture.…”

Section: Resultssupporting

confidence: 91%

Culture and the disposition effect

2019

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We study the relationship between national culture and the disposition effect by investigating international differences in the degree of investors' disposition effect. We utilize brokerage data of 387,993 traders from 83 countries and find great variation in the degree of the disposition effect across the world. We find that the cultural dimensions of long-term orientation and indulgence help to explain why certain nationalities are more prone to the disposition effect.We also find support on an international level for the role of age and gender in explaining the disposition effect.

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“…Barua et al (2010), Srinidhi et al (2011), Thiruvadi and Huang (2011) found strong evidence that S&P firms with more women on the corporate board report higher quality earnings. This is explained as a result of the tendency of female directors to abide by ethical values and regulations (Barua et al, 2010;Ittonen et al, 2013), female directors being more risk averse than male directors (Watson and McNaughton, 2007;Rau, 2014), and/or heterogeneity in the decision making process by different genders (Bosquet et al, 2014). However, in studying Chinese companies, Ye et al (2010) found no influence of gender on earnings quality.…”

Section: Introductionmentioning

confidence: 71%