Culture and the disposition effect

Bastian Breitmayer, Tim Hasso and Matthias Pelster

Economics Letters, 2019, vol. 184, issue C

Abstract: We study the relationship between national culture and the disposition effect by investigating international differences in the degree of investors’ disposition effect. We utilize brokerage data of 387,993 traders from 83 countries and find great variation in the degree of the disposition effect across the world. We find that the cultural dimensions of long-term orientation and indulgence help to explain why certain nationalities are more prone to the disposition effect. We also find support on an international level for the role of age and gender in explaining the disposition effect.

Keywords: Disposition effect; Culture; Investor behavior; Risk-aversion (search for similar items in EconPapers)
JEL-codes: D1 G1 Z1 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:184:y:2019:i:c:s016517651930326x

DOI: 10.1016/j.econlet.2019.108653

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