Myopic Loss Aversion, Personality, and Gender

Robert B. Durand*, Lucia FUNG, Manapon Limkriangkrai

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    15 Citations (Scopus)

    Abstract

    Investor propensity to exhibit myopic loss aversion (MLA) varies. The authors’ analysis, which follows and extends the experimental design of Gneezy and Potters [1997] and Haigh and List [2005], finds that extraversion, one of Norman’s Big 5 personality traits, is associated with variation in subjects’ MLA. Extraversion, a trait positively associated with risk, reduces MLA. There is also some indication that neuroticism seems to have a positive association with MLA. Gender does not appear to have robust association with MLA. The study findings suggest that it may be advantageous to use readily measurable psychological constructs rather than gender per se in both experimental and field research.

    Original languageEnglish
    Pages (from-to)339-353
    Number of pages15
    JournalJournal of Behavioral Finance
    Volume20
    Issue number3
    DOIs
    Publication statusPublished - 3 Jul 2019

    Scopus Subject Areas

    • Experimental and Cognitive Psychology
    • Finance

    User-Defined Keywords

    • Gender
    • Myopic loss aversion
    • Personality traits

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