Repurchase behavior of individual investors, sophistication and regret

Camille Magron and Maxime Merli

Journal of Banking & Finance, 2015, vol. 61, issue C, 15-26

Abstract: This study uses a database of over 6million trades from a large European brokerage house to investigate the stock repurchase behavior of individual investors from 1999 to 2006. Running survival analysis techniques, we show at an individual level that the duration between a sale and a repurchase is shorter when the investor has had a positive experience with the stock or when the stock has lost value since being sold. More sophisticated investors are significantly less prone to this behavior. Our findings emphasize the importance of regret in financial decisions. Public and private information, tax considerations and contrarian strategy do not drive repurchase behavior.

Keywords: Individual investors; Repurchase behavior; Investors sophistication; Regret (search for similar items in EconPapers)
JEL-codes: G02 G11 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378426615002320
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:61:y:2015:i:c:p:15-26

DOI: 10.1016/j.jbankfin.2015.08.021

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().