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Empirical study on disposition effect of Bangladeshi investors

Journal of East Asian studies Volume 16 Page 41-55
published_at 2018-03
D300016000003.pdf
[fulltext] 1.94 MB
Title
Empirical study on disposition effect of Bangladeshi investors
Creators Bhowmik Dipu Rani
Source Identifiers
Creator Keywords
individual investor disposition effect investors' characteristics sophistication
This research investigates the tendency of emerging market investors to hold losers too long and sell winners too soon. I calculate 125 individual investors' daily transactions using a large brokerage account database between 2011 and 2016 in Bangladesh. The results demonstrate that investors at aggregate level as well as individual level in Bangladesh have a historical preference for realizing their winning investments more than their losing ones. Individual investors realize their gains 1.6 times more than their losses. This study also tests the disposition effect of traders on the basis of frequency, gender and average rate of return and then judges the role of investors' personal characteristics on trading behavior. Bangladeshi investors are highly suffering from disposition effect, making poor trading decisions and their tendency towards disposition effect is not motivated by influencing factor like portfolio rebalance.
Languages eng
Resource Type journal article
Publishers 山口大学大学院東アジア研究科
Date Issued 2018-03
File Version Version of Record
Access Rights open access
Relations
[ISSN]1347-9415
[NCID]AA11831154