The Disposition Effect and Risk Preference in Losses

DOI

10.2991/mbdasm-19.2019.9How to use a DOI?

Keywords

disposition effect; risk preference; investment return

Abstract

We examine whether the risk preference in losses increase the disposition effect. We take 9526 investors’ annual trading data of a large china’s futures company in 2013 as an example. The results show that most of investors have disposition effect, only the professional investors have a moderate risk preference in loss do not have. Risk preference is an important factor, it increase the hold losses significantly, then the disposition effect increased. Moreover, the disposition effect has a negative impact on investment returns. the higher risk preference is, the more hold losses and cash profit is, but the return determined by hold losses.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Wenhui Li
AU  - Guohua Chen
PY  - 2019/10
DA  - 2019/10
TI  - The Disposition Effect and Risk Preference in Losses
BT  - Proceedings of the 2019 International Conference on Mathematics, Big Data Analysis and Simulation and Modelling (MBDASM 2019)
PB  - Atlantis Press
SP  - 39
EP  - 42
SN  - 2352-538X
UR  - https://doi.org/10.2991/mbdasm-19.2019.9
DO  - 10.2991/mbdasm-19.2019.9
ID  - Li2019/10
ER  -