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The exploration of disposition effect among business undergraduates in Poland

Author

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  • Monika Czerwonka

    (Warsaw School of Economics)

Abstract

In this article the author attempts to explore the phenomena of disposition effect among Polish undergraduate students. The study shows that under experimental conditions participants do show disposition “to sell winners too early and ride losers too long”. Such disposition stands in opposition to rationale behavior which induces to hold stocks during the whole period of experiment. The research provides important insights into the field of behavioral finance and in particular into the global analysis of disposition effect.

Suggested Citation

  • Monika Czerwonka, 2015. "The exploration of disposition effect among business undergraduates in Poland," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 4(2), pages 79-89.
    • Handle: RePEc:cpn:umkcjf:v:4:y:2015:i:2:p:79-89
    as

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    File URL: https://apcz.umk.pl/CJFA/article/view/CJFA.2015.017/7407
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    References listed on IDEAS

    as
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    2. Fama, Eugene F., 1998. "Market efficiency, long-term returns, and behavioral finance," Journal of Financial Economics, Elsevier, vol. 49(3), pages 283-306, September.
    3. Zuchel, Heiko, 2001. "What Drives the Disposition Effect?," Sonderforschungsbereich 504 Publications 01-39, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
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    6. Weber, Martin & Camerer, Colin F., 1998. "The disposition effect in securities trading: an experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 33(2), pages 167-184, January.
    7. De Bondt, Werner F M & Thaler, Richard H, 1987. "Further Evidence on Investor Overreaction and Stock Market Seasonalit y," Journal of Finance, American Finance Association, vol. 42(3), pages 557-581, July.
    8. Weber, Martin & Zuchel, Heiko, 2001. "How Do Prior Outcomes Affect Risky Choice? Further Evidence on the House-Money Effect and Escalation of Commitment," Sonderforschungsbereich 504 Publications 01-48, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    9. Shefrin, Hersh & Statman, Meir, 1985. "The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence," Journal of Finance, American Finance Association, vol. 40(3), pages 777-790, July.
    10. Zuchel, Heiko, 2001. "What drives the disposition effect?," Papers 01-39, Sonderforschungsbreich 504.
    Full references (including those not matched with items on IDEAS)

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