An Empirical Study of Investors¡¯ Disposition Effect in China Based on Open Data from the Chinese Stock Markets

Huan Cai, Meining Wang and Chaonan Bai

International Journal of Economics and Finance, 2018, vol. 10, issue 5, 165-172

Abstract: This paper focuses on investors¡¯ different behavioral biases in China¡¯s segmented stock markets and investigates the correlation between average holding periods, stock returns and investors¡¯ disposition effect between 2010 and 2014. The results show that the disposition effect is prevalent in A-share market but is very weak in Growth Enterprise market and there is a lack of evidence to support the existence of disposition effect in B-share market. The study supports the view that investors¡¯ experience and sophistication can partly help reduce investors¡¯ behavioral biases in stock markets. It also indicates that investors in A-shares market prefer to hold stocks with larger market capitalization for longer periods, while investors of B-shares markets and Growth Enterprise market do not reveal a specific preference for market capitalization.

Keywords: investors¡¯ behavior; disposition effect; investment experience (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://ccsenet.org/journal/index.php/ijef/article/view/74178 (application/pdf)
http://ccsenet.org/journal/index.php/ijef/article/view/74178 (text/html)

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:ibn:ijefaa:v:10:y:2018:i:5:p:165-172

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().