Proceedings of the 2019 International Conference on Mathematics, Big Data Analysis and Simulation and Modelling (MBDASM 2019)

The Disposition Effect and Risk Preference in Losses

Authors
Wenhui Li, Guohua Chen
Corresponding Author
Guohua Chen
Available Online October 2019.
DOI
10.2991/mbdasm-19.2019.9How to use a DOI?
Keywords
disposition effect; risk preference; investment return
Abstract

We examine whether the risk preference in losses increase the disposition effect. We take 9526 investors’ annual trading data of a large china’s futures company in 2013 as an example. The results show that most of investors have disposition effect, only the professional investors have a moderate risk preference in loss do not have. Risk preference is an important factor, it increase the hold losses significantly, then the disposition effect increased. Moreover, the disposition effect has a negative impact on investment returns. the higher risk preference is, the more hold losses and cash profit is, but the return determined by hold losses.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2019 International Conference on Mathematics, Big Data Analysis and Simulation and Modelling (MBDASM 2019)
Series
Advances in Computer Science Research
Publication Date
October 2019
ISBN
978-94-6252-811-6
ISSN
2352-538X
DOI
10.2991/mbdasm-19.2019.9How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Wenhui Li
AU  - Guohua Chen
PY  - 2019/10
DA  - 2019/10
TI  - The Disposition Effect and Risk Preference in Losses
BT  - Proceedings of the 2019 International Conference on Mathematics, Big Data Analysis and Simulation and Modelling (MBDASM 2019)
PB  - Atlantis Press
SP  - 39
EP  - 42
SN  - 2352-538X
UR  - https://doi.org/10.2991/mbdasm-19.2019.9
DO  - 10.2991/mbdasm-19.2019.9
ID  - Li2019/10
ER  -