Up Close and Personal: Investor Sophistication and the Disposition Effect

References

• Alexander Gordon, Jones Jonathan, Nigro Peter. Mutual fund shareholders: Characteristics, shareholder demographics, and sources of information. Financial Services Rev. (1998) 7):301–316Crossref, Google Scholar
• Ang Andrew, Bannaloni Angela. Do demographic changes affect risk premium. J. Bus. (2005) 78(1):341–380Crossref, Google Scholar
• Bailey Thomas, Berg Peter, Sandy Carola. The effect of high-performance work practices on employee earnings in the steel, apparel, and medical electronics and imaging industries. Indust. Labor Relations Rev. (2001) 54-2A:525–543Crossref, Google Scholar
• Barber Brad, Odean Terrance. Trading is hazardous to your wealth: The common stock investment performance of individual investors. J. Finance (2000) April):773–806Crossref, Google Scholar
• Barber Brad, Odean Terrance. Boys will be boys: Gender, overconfidence, and common stock investment. Quart. J. Econom. (2001) 116(1):261–292Crossref, Google Scholar
• Barber Brad, Odean Terrance, Zhu Ning. Systematic noise. (2003) . Working paper, University of California, Davis, CAGoogle Scholar
• Barberis Nicholas, Shleifer Andrei. Style investing. J. Financial Econom. (2003) 68(2):161–199Crossref, Google Scholar
• Benartzi Shlomo, Thaler Richard. Risk aversion or myopia? Choices in repeated gambles and retirement investments. Management Sci. (1999) 45:364–381Link, Google Scholar
• Bureau of Labor StatisticsOccupational Outlook Handbook, 2000–2001 Edition (2000) (JIST Works, Washington, D.C.) Google Scholar
• Camerer Colin, Hogarth R. M. The effects of financial incentives in experiments: A review and capital-labor-production framework. J. Risk Uncertainty (1999) 19(1–3):7–42Crossref, Google Scholar
• Chevalier Judith, Ellison Glenn. Are some mutual fund managers better than others? Cross-sectional patterns in behavior and performance. J. Finance (1999) 54:875–899Crossref, Google Scholar
• Constantinides George. Optimal stock trading with personal taxes: Implications for prices and the abnormal January returns. J. Financial Econom. (1984) 13:65–69Crossref, Google Scholar
• Coupey Eloise, Irwin Julie, Payne John. Product category familiarity and preference construction. J. Consumer Res. (1998) 24(4):459–468Crossref, Google Scholar
• Coursey Don L., Hovis L., Schulze William D. The disparity between willingness to accept and willingness to pay measures of value. Quart. J. Econom. (1987) CII:679–690Crossref, Google Scholar
• Daniel Kent, Hirshleifer D., Subrahmanyam A. Investor psychology and security market under- and overreactions. J. Finance (1998) 53:1839–1885Crossref, Google Scholar
• Dhar Ravi, Kumar Alok. A non-random walk down the main street: Impact of price trends on trading behavior of individual investors. (2002) . Working paper, International Center for Finance, Yale University, New Haven, CTGoogle Scholar
• Goetzmann William, Kumar Alok. Why do individual investors hold under-diversified portfolios? (2003) . Working paper, Yale School of Management, Yale University, New Haven, CTGoogle Scholar
• Goetzmann William, Massa M. Daily momentum and contrarian behavior of index fund investors. J. Finance Quant. Anal. (2002) 37:375–390Crossref, Google Scholar
• Golec Joseph H. The effects of mutual fund managers’ characteristics on their portfolio performance, risk and fees. Financial Service Rev. (1996) 5:133–148Crossref, Google Scholar
• Gomes Francisco. Portfolio choice and trading volume with loss-averse investors. (2002) . Working paper, London Business School, London, UKGoogle Scholar
• Goyal Amit. Demographics, stock market flows, and stock returns. (2001) . Working paper, University of California, Los Angeles, CAGoogle Scholar
• Grinblatt Mark, Keloharju M. Distance, language and culture bias: The role of investor sophistication. J. Finance (2001a) 56(3):1053–1073Crossref, Google Scholar
• Grinblatt Mark, Keloharju M. What makes investors trade. J. Finance (2001b) 56(2):598–616Crossref, Google Scholar
• Heath Chip, Huddart Steven, Lang Mark. Psychological factors and stock option exercise. Quart. J. Econom. (1998) 114(2):601–628Crossref, Google Scholar
• Heath Chip, Larrick Richard, Wu George. Goals as reference points. Cognitive Psych. (1999) 38:79–109Crossref, Google Scholar
• Hong Harrison, Stein Jeremy. A unified theory of underreaction, momentum trading and overreaction in asset markets. J. Finance (1999) 54(6):2143–2184Crossref, Google Scholar
• Ingersoll Jonathan E.Theory of Financial Decision Making (1987) (Rowman & Littlefield Publishing, Inc., Blue Ridge Summit, PA) Google Scholar
• Kahneman Daniel. Reference points, anchors, norms, and mixed feelings. Organ. Behavior Human Decision Processes (1992) 51:296–312Crossref, Google Scholar
• Kahneman Daniel, Frederick Shane. Representativeness revisited: Attribute substitution in intuitive judgments. (2001) . Working paper, Princeton University, Princeton, NJGoogle Scholar
• Kahneman Daniel, Riepe M. The psychology of the non-professional investors. J. Portfolio Management (1998) 24:52–65Crossref, Google Scholar
• Kahneman Daniel, Tversky Amos. Prospect theory: An analysis of decision under risk. Econometrica (1979) 47(2):263–291Crossref, Google Scholar
• Knetsch J. L., Sniden J. A. Willingness to pay and compensation demanded: Experimental evidence of an unexpected disparity in measures of value. Quart. J. Econom. (1984) 99(August):507–521Crossref, Google Scholar
• Knez Peter, Smith Vernon L., Williams Arlington W. Individual rationality, market rationality, and value estimation. Amer. Econom. Rev. (1985) 75(2):397–402Google Scholar
• Krueger Alan, Rouse Cecilia. The effect of workplace education on earnings, turnover, and job performance. J. Labor Econom. (1998) 16(1):61–94Crossref, Google Scholar
• List John A. Does market experience eliminate market anomalies? Quart. J. Econom. (2003) 118(1):41–71Crossref, Google Scholar
• List John A. Neoclassical theory versus prospect theory: Evidence from the marketplace. Econometrica (2004) 72(2):615–625Crossref, Google Scholar
• Mullainathan Sendhil, Thaler Richard H. Behavioral economics. (2002) . Working paper no. W7948, NBER, Cambridge, MAGoogle Scholar
• NASD Investor Literacy Survey National Association of Securities Dealership. (2003) . Retrieved December 2003, http://www.nasd.com/Investor/pdf-text/surveyexecsum.pdfGoogle Scholar
• Nicolosi Gina, Peng Liang, Zhu Ning. Do individuals learn from their trading experience? (2004) . Working paper, University of California, Davis, Davis, CAGoogle Scholar
• Novemsky Nathan, Kahneman Daniel. The boundaries of loss aversion. J. Marketing Res. (2005) 42:119–128Crossref, Google Scholar
• Odean Terrance. Are investors reluctant to realize their losses. J. Finance (1998) 53(5):1775–1798Crossref, Google Scholar
• Odean Terrance. Do investors trade too much? Amer. Econom. Ref. (1999) 89(5):1279–1298Crossref, Google Scholar
• Ofek Eli, Richardson Matthew. Dotcom mania: The rise and fall of internet stock prices. J. Finance. (2003) 58:1113–1138Crossref, Google Scholar
• Payne J. W., Laughhunn D. J., Crum R. Multi-attribute risky choice behavior: The editing of complex prospects. Management Sci. (1984) 30:1350–1361Link, Google Scholar
• Schlarbaum Gary, Lewellen Wilber, Lease Ronald. Realized returns on common stock investments: The experience of individual investors. J. Bus. (1978) 51:299–325Crossref, Google Scholar
• Shapira Zur, Venezia Itzhak. Patterns of behavior of professionally managed and independent investors. J. Banking Finance (2001) 25(8):1573–1587Crossref, Google Scholar
• Shefrin Hersh, Statman Meir. The disposition to sell winners too early and ride losers too long: Theory and evidence. J. Finance (1985) 40:777–790Crossref, Google Scholar
• Shogren Jason F., Shin Seung Y., Hayes Dermot J., Kliebenstein James B. Resolving differences in willingness to pay and willingness to accept. Amer. Econom. Rev. (1994) LXXXIV:255–270Google Scholar
• Tversky Amos, Kahneman Daniel. Loss aversion in riskless choice: A reference-dependent model. Quart. J. Econom. (1991) CVI:1039–1061Crossref, Google Scholar
• U.S. Bureau of the CensusCensus of Population and Housing (2000) . Washington, D.C.Google Scholar
• Weber Martin, Camerer Colin. The disposition effect in securities trading: An experimental analysis. J. Econom. Behavior Organ. (1998) 33:167–184Crossref, Google Scholar
• Wegener Duane, Petty R. Flexible correction processes in social judgment. J. Personality Social Psych. (1995) 68(1):36–52Crossref, Google Scholar
• Zhu Ning. The local bias of individual investors. (2003) . Working paper, International Center for Finance, Yale University, New Haven, CTGoogle Scholar