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Disposition effect and gender

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  • Newton Da Costa
  • Carlos Mineto
  • Sergio Da Silva

Abstract

Investors seem to hold on to their losing stocks to a greater extent than they hold on to their winning stocks. This well-documented behavioural regularity is termed disposition effect (Shefrin and Statman, 1985). We set an experiment to replicate results from a previous study of the disposition effect (Weber and Camerer, 1998) and further show that a subject's gender may interfere with the effect's detection.

Suggested Citation

  • Newton Da Costa & Carlos Mineto & Sergio Da Silva, 2008. "Disposition effect and gender," Applied Economics Letters, Taylor & Francis Journals, vol. 15(6), pages 411-416.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:6:p:411-416
    DOI: 10.1080/13504850600706560
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    References listed on IDEAS

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    1. Bing NMI1 Han & Mark Grinblatt, 2001. "The Disposition Effect and Momentum," Yale School of Management Working Papers ysm239, Yale School of Management.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. George Loewenstein & Drazen Prelec, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 573-597.
    4. 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.
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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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