Investor Logins and the Disposition Effect

Edika Quispe-Torreblanca, John Gathergood, George Loewenstein () and Neil Stewart ()
Additional contact information
George Loewenstein: Social and Decision Sciences, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213
Neil Stewart: Network for Integrated Behavioural Science, Nottingham NG7 2RD, United Kingdom; Warwick Business School, University of Warwick, Coventry CV4 7AL, United Kingdom

Management Science, 2025, vol. 71, issue 1, 219-239

Abstract: Using data from an online brokerage, we examine the role of investor logins in trading behavior. We find that a new reference point is created when an investor logs in and views the investor’s portfolio. We observe this as a disposition effect on returns since last login in addition to the traditional disposition effect on returns since purchase. Further, these reference points produce a strong interaction such that even a small loss since last login nullifies the positive effect of a gain since purchase. This interaction follows if investors select the higher, more aspirational price as a reference point.

Keywords: reference point; disposition effect; attention; login; investor behavior (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.2022.00359 (application/pdf)

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:inm:ormnsc:v:71:y:2025:i:1:p:219-239

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().