TY - JOUR
T1 - Myopic Loss Aversion, Personality, and Gender
AU - Durand, Robert B.
AU - FUNG, Lucia
AU - Limkriangkrai, Manapon
N1 - Funding Information:
Robert Durand acknowledges financial support from the School of Economics, Finance and Property, Curtin University. Lucia Fung acknowledges financial support provided by the Department of Management, Business School of the Hong Kong Baptist University. The authors declare that they have no relevant or material financial interests that relate to the research described in this article. The authors are grateful for comments made by Lata Gangadharan, Corey Shank, Lee Smen, Lyla Zhang, participants at the Experimental Finance 2016 Conference (St. Martin, Germany); the 2016 Academy of Behavioral Finance and Economics Conference (Las Vegas, Nevada); the 2016 Auckland Finance Meeting; seminar attendees at Curtin University and Monash University; and an anonymous reviewer.
PY - 2019/7/3
Y1 - 2019/7/3
N2 - 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.
AB - 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.
KW - Gender
KW - Myopic loss aversion
KW - Personality traits
UR - http://www.scopus.com/inward/record.url?scp=85062331359&partnerID=8YFLogxK
U2 - 10.1080/15427560.2018.1511562
DO - 10.1080/15427560.2018.1511562
M3 - Journal article
AN - SCOPUS:85062331359
SN - 1542-7560
VL - 20
SP - 339
EP - 353
JO - Journal of Behavioral Finance
JF - Journal of Behavioral Finance
IS - 3
ER -