What Drives the Disposition Effect? An Analysis of a Long-Standing Preference-Based Explanation

No abstract is available for this paper.

• Publication year

  2009

• Venue

  Journal of Finance

• Publication date

  2009-04-01

• Fields of study

  Business, Economics

• Identifiers
  DOI 10.2139/SSRN.890271
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

• Stocks as Lotteries: the Implications of Probability Weighting for Security Prices

  2008cited by this paper
• Up Close and Personal: Investor Sophistication and the Disposition Effect

  2006cited by this paper
• The Disposition E ff ect and Underreaction to News

  2006cited by this paper
• Individual Preferences, Monetary Gambles, and Stock Market Participation: A Case for Narrow Framing

  2006cited by this paper
• Prospect theory and liquidation decisions

  2006cited by this paper
• Do Behavioral Biases Affect Prices

  2005cited by this paper
• Portfolio Choice and Trading Volume with Loss Averse Investors

  2005cited by this paper
• Prospect Theory, Mental Accounting, and Momentum

  2005cited by this paper
• Do Investor Sophistication and Trading Experience Eliminate Behavioral Biases in Financial Markets

  2005cited by this paper
• Up Close and Personal: An Individual Level Analysis of the Disposition Effect

  2002cited by this paper
• Loss Aversion and Seller Behavior: Evidence from the Housing Market

  2001cited by this paper
• What Makes Investors Trade

  2001cited by this paper
• Risk Aversion and Expected Utility Theory: A Calibration Theorem

  2000cited by this paper
• Optimal Portfolio Choice under Loss Aversion

  2000cited by this paper
• Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors

  2000cited by this paper
• Psychological Factors and Stock Option Exercise

  1999cited by this paper
• Are Investors Reluctant to Realize Their Losses

  1996cited by this paper
• Foundations of Finance

  1994cited by this paper
• Myopic Loss Aversion and the Equity Premium Puzzle

  1993cited by this paper
• Advances in prospect theory: Cumulative representation of uncertainty

  1992influential reference
• The Disposition Effect in Securities Trading: An Experimental Analysis

  1991cited by this paper
• First order risk aversion and the equity premium puzzle

  1990cited by this paper
• Optimal consumption and portfolio policies when asset prices follow a diffusion process

  1989cited by this paper
• The disposition to sell winners too early and ride losers too long

  1985cited by this paper
• Prospect theory: An analysis of decision under risk Econometrica 47

  1979cited by this paper
• Foundations of Finance.

  1977cited by this paper
• You have printed the following article : Prospect Theory : An Analysis of Decision under Risk

  year unknowncited by this paper

• Digital Financial Literacy and Investment Grip: A Study of Japanese Active Investors

  2026cites this paper
• Too familiar to perceive: How does extreme air quality affect investors' disposition effect?

  2026cites this paper
• The Case for Mindful Customer Protection

  2026cites this paper
• From the pitch to the market: what determines fan token prices dynamics and trading activities?

  2026cites this paper
• Loss Aversion in Investment: A Bibliometric and Network Visualization Analysis

  2026cites this paper
• Prior outcomes and subsequent risk-taking: evidence from New York City taxi rides

  2026cites this paper
• Dynamic Trading with Realization Utility

  2026cites this paper
• Past performance impacts financial judgments and willingness to sell more than types of fund, differences between professionals vs. lay people

  2025cites this paper
• At the Top of the Mind: Peak Prices and the Disposition Effect

  2025cites this paper
• Aspirational utility and investment behavior

  2025cites this paper
• Information Framing and Disposition Effect on Nepalese Investors’ Decision-making Behavior

  2025cites this paper
• Stakes and investor behaviors

  2025cites this paper
• Trading in Twilight: Sleep, Mental Alertness, and Stock Market Trading

  2025cites this paper
• Beyond Performance: Exploring trade-offs in the design of financial algorithms

  2025cites this paper
• Reversal of divergent decisions: wise or hasty decisions?

  2025cites this paper
• Expectational reference points and belief formation: Field evidence from financial analysts

  2025cites this paper
• Asymmetric Underreactions and House Price Revisions

  2025cites this paper
• Option Return Predictability via Machine Learning: New Evidence From China

  2025cites this paper
• Behavioral Attributes Influencing Decision Making of Indian Derivative Market Investors

  2025cites this paper
• Empirical test of the hedonic editing hypothesis in mutual fund redemptions: evidence from individual account data

  2025cites this paper
• Generational theory of behavioral biases in investment behavior

  2025cites this paper
• Political Geography, Myside Bias, and Retail Investor Behavior

  2025cites this paper
• Rebuilding a DSS with feedback from behavioral and neuroscience studies

  2025cites this paper
• Mapping Global Research Trends on Loss Aversion: A Bibliometric Analysis Using Scopus Data (2000–2025)

  2025cites this paper
• In Too Deep: The Effect of Sunk Costs on Corporate Investment

  2025cites this paper
• Expectations-based reference-dependence and labor supply: Eliciting cabdrivers’ expectations in the field

  2025cites this paper
• Negative Emotions and Decision-Making Paralysis Among Individual Investors: A Qualitative Approach

  2025cites this paper
• Optimal investment problem with a tracking-error constraint under prospect theory

  2025cites this paper
• Two-Stage Distributionally Robust Optimization for an Asymmetric Loss-Aversion Portfolio via Deep Learning

  2025cites this paper
• Reaching for Yield: Evidence from Households

  2025cites this paper
• Social Audience Size as a Reference Point: Evidence from a Field Experiment

  2025cites this paper
• Scaling Laws And Statistical Properties of The Transaction Flows And Holding Times of Bitcoin

  2024cites this paper
• Behavioral biases of cryptocurrency investors: a prospect theory model to explain cryptocurrency returns

  2024cites this paper
• Reference-Dependent Asset Pricing with a Stochastic Consumption-Dividend Ratio

  2024cites this paper
• Leaving the (fund) gate ajar: Investor protection or marketing ploy?

  2024cites this paper
• Does ambiguity drive the disposition effect?

  2024cites this paper
• The Big 5 personality traits and investment biases: the role of financial literacy

  2024cites this paper
• Transaction flows and holding time scaling laws of bitcoin

  2024cites this paper
• Infectious disease outbreaks and the disposition effect of mutual fund investors

  2024cites this paper
• Analysis of Abnormal Phenomena in China Securities Market Based on Behavioral Finance

  2024cites this paper
• Why Do Trading Frenzies Motivate “locals” to Make Better Trading

  2024cites this paper
• The knowledge domain and emerging trends in Behavioral Finance: A Scientometric Analysis

  2024cites this paper
• Determinants of disposition effect in the real estate market: Evidence from Taiwan

  2024cites this paper
• Belief dispersion in the Chinese stock market and fund flows

  2024cites this paper
• When echoes surpass voices: Market reaction to forwarded news

  2024cites this paper
• Market conditions, investor sentiment and disposition effect. An empirical study based on China's stock market

  2024cites this paper
• Multi-period portfolio choice under loss aversion with dynamic reference point in serially correlated market

  2024cites this paper
• Beyond Intuition: The Role of Financial Knowledge in Navigating Investments in Emerging Markets

  2024cites this paper
• Passive vs active robo-advisors and disposition effect. Moderating role of gender and financial literacy

  2024influential citation
• Portfolio framing and diversification in a disposition effect experiment

  2024cites this paper
• Robust dynamic trading with realization utility

  2024cites this paper
• Does the Bangladesh Equity Market Expose to Disposition Effects Bias under Different Market Conditions?

  2024cites this paper
• The Importance of Risk Preference Parameters in Prospect Theory: Evidence from Mutual Fund Flows

  2024cites this paper
• Herding Bias and Investment Performance in Kenya's Dynamic Real Estate Sector.

  2024cites this paper
• A meta-analysis of loss aversion in risky contexts

  2024cites this paper
• Optimal Stopping Decisions and the Disposition Effect

  2024cites this paper
• Investor Logins and the Disposition Effect

  2024cites this paper
• Expectations-based Reference-Dependence and Labor Supply: Eliciting Cabdrivers’ Expectations in the Field

  2024cites this paper
• Integrating narrow and wide framing disposition effect: A novel approach incorporating perceived risk and realized asset performance

  2024cites this paper
• Do you have a Choice: Implications for belief updating and the disposition effect

  2024cites this paper
• Make Hay While the Sun Shines: An Empirical Study of Maximum Price, Regret and Trading Decisions

  2024cites this paper
• Post-COVID-19 technology adoption and noise trading: elucidation of investors' sentiments across cultures

  2024cites this paper
• Attention Allocation of Investors on Social Media: The Role of Prospect Theory

  2024cites this paper
• Heterogeneous Trading Behaviors of Individual Investors: A Deep Clustering Approach

  2024cites this paper
• The role of investor sentiment and market belief in forecasting V-shaped disposition effect: Evidence from a Bayesian learning process with DSSW model

  2024cites this paper
• The Impact of Family Wealth on Asset Return: A Moderated Chain Median Model Partially Explaining Wealth Inequality

  2024cites this paper
• Variance Decomposition and Cryptocurrency Return Prediction

  2024cites this paper
• Digital finance era: Will individual investors become better players?

  2024cites this paper
• Disposition effect and its outcome on endogenous price fluctuations

  2024cites this paper
• Research on the Development of Investment Portfolio Theory

  2024cites this paper
• Hyperopic Loss Aversion

  2023cites this paper
• UM ESTUDO EXPLORATÓRIO DO EFEITO DISPOSIÇÃO NO MERCADO DE AÇÕES DURANTE A PANDEMIA DE COVID-19

  2023cites this paper
• Technological advancements and noise trading: A case of investors’ sentiments at the Pakistan stock exchange

  2023cites this paper
• Hot Potatoes: Underpricing of Stocks following Extreme Negative Returns

  2023cites this paper
• Boundedly rational bidding decision for land auctions during the transformation of real estate markets

  2023cites this paper
• Range-dependence and memory in portfolio selection and asset pricing

  2023cites this paper
• The Real Effects of Reference-dependent Preferences: Evidence from Mergers and Acquisitions

  2023cites this paper
• Fundamental strength and the 52-week high anchoring effect

  2023influential citation
• Market Crowds' Trading Behaviors, Agreement Prices, and the Implications of Trading Volume

  2023cites this paper
• Disposed to Be Overconfident

  2023cites this paper
• Weathering the crash: Do customer-company relationships pay off during economic crises?

  2023cites this paper
• Dynamic portfolio choice with uncertain rare-events risk in stock and cryptocurrency markets

  2023cites this paper
• Demystifying disposition effect: past, present and future

  2023cites this paper
• BeFi meets DeFi: A behavioral finance approach to decentralized finance asset pricing

  2023cites this paper
• When Do Robo-Advisors Make Us Better Investors? The Impact of Social Design Elements on Investor Behavior

  2023cites this paper
• Will R&D make investors more tolerant? Analysis based on the performance forecast of Chinese listed companies

  2023cites this paper
• Are Cryptos Different? Evidence from Retail Trading

  2023cites this paper
• Managerial disposition effect: Evidence from China

  2023cites this paper
• How Gains and Losses Shape Investors’ Expectations

  2023cites this paper
• Shed old baggage and invest wisely. A bibliometric and thematic analysis of disposition effect and investment

  2023cites this paper
• How does the COVID-19 pandemic change the disposition effect in fund investors?

  2023cites this paper
• First passage times in portfolio optimization: A novel nonparametric approach

  2023cites this paper
• Multi-asset financial bubbles in an agent-based model with noise traders’ herding described by an n-vector Ising model

  2023cites this paper
• A SUMMARY ON FITRADEOFF METHOD WITH METHODOLOGICAL AND PRACTICAL DEVELOPMENTS AND FUTURE PERSPECTIVES

  2023cites this paper
• Is attention-based stock buying profitable? Empirical evidence from Chinese individual investors

  2023cites this paper
• How Endogenization of the Reference Point Affects Loss Aversion: A Study of Portfolio Selection

  2022cites this paper
• Decision Making Under Cumulative Prospect Theory: An Alternating Direction Method of Multipliers

  2022cites this paper
• Prospect Value Function Construction for Pattern Recognition Algorithm’s Accuracy Metric

  2022cites this paper
• University ’ s repository of research publications and other research outputs Stock market investors ’ use of stop losses and the disposition effect Journal Item

  2022cites this paper
• Methods of classifying Tunisian investors into homogeneous groups

  2022cites this paper