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Disposition bias among Borsa Istanbul investors: What do we know about type, size and trading frequency?

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  • Kahya, Evrim Hilal
  • Ekinci, Cumhur

Abstract

This paper investigates the disposition bias for different categories of investors based on type (legal persons, female and male), size (large, medium and small) and trading frequency (frequently, occasionally and infrequently trading). Analyzing an exhaustive dataset consisting of 283,913 investors from Borsa Istanbul, we find that all types of investors exhibit disposition bias while legal persons, large investors and frequently trading investors do less. Trading frequency, rather than size, is the most relevant investor feature associated with disposition bias. A detailed analysis with combined features is needed for understanding the role of various factors in this investor behavior.

Suggested Citation

  • Kahya, Evrim Hilal & Ekinci, Cumhur, 2022. "Disposition bias among Borsa Istanbul investors: What do we know about type, size and trading frequency?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    • Handle: RePEc:eee:beexfi:v:35:y:2022:i:c:s2214635022000351
    DOI: 10.1016/j.jbef.2022.100682
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    More about this item

    Keywords

    Behavioral finance; Disposition bias; Loss aversion; Investor types; Borsa Istanbul;
    All these keywords.

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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