Abstract: The current research tries to contribute to the prospect theory by examining how personality factors affect behaviour biases. Moreover, the study tries to inspect how risk-tolerance behaviour moderates the relationship between personality traits and behavior biases. The research considered a cross-sectional research design to collect responses from 847 individual investors through a questionnaire. The study considered a convenience sampling technique. Further to examine the hypotheses, the study used SEM and PROCESS macro v3.0 for SPSS. The findings of the study suggest that conscientiousness and extroversion traits significantly influence behaviour biases. The findings also explain that neuroticism was associated with herding, disposition, and anchoring bias. The findings confirmed the moderating effect of risk-tolerance on the association between personality traits and behaviour biases. The findings contribute to the existing literature of behaviour finance by focusing on the prospect theory as well as some practical implications for investors and financial advisors. The study suggests to the individual investors with different traits how they can overcome these biases while investing. The study suggests that financial advisors should educate their clients and also establish a lock-gain point and stop-loss point to reduce the effect of such biases. The study also suggests that investment advisors should provide information more efficiently so that investors’ portfolios could be amassed into a well-diversified investment and tries to set up efficient approaches associated with investment quality and give swapping options as per their risk-tolerance behavior. The research contributes to behaviour finance literature by signifying the moderation effect of risk tolerance on the association amid personality factors and behavioural biases and how it reduces the influence of biases while taking investment decisions among Indian investors. To the best of our knowledge, this is the first comprehensive study that examines the moderation effect of risk-tolerance among the relationship between personality traits and behaviour biases. Furthermore, it demonstrates that an individual’s risk-tolerance enhances their involvement in the decision-making process, allowing them to make the best financial option possible.

Abstract: This study experimentally examines the impact of time constraints on the disposition effect, which refers to the empirical fact that investors have a higher propensity to sell stocks with capital gains compared to stocks with capital losses. We recruit 270 student participants and implement three treatments: no time constraint (NTC), 20-s time constraint (20TC), and 10-s time constraint (10TC). We find that the 10TC treatment, where student participants perceive higher levels of time pressure than the NTC treatment, significantly reduces the disposition effect, whereas the 20TC treatment, in which feelings of time pressure do not differ from the NTC treatment, does not affect the disposition effect. Self-control is a potential explanation for the treatment effect. The replication experiment with 166 financial professionals not only indicates our results’ external validity but also shows the robustness of our results to the high time pressure (i.e., 5-s time constraint).

Abstract: This study tests whether modulating a brain region associated with cognitive control using noninvasive brain stimulation affects the disposition effect. A participant trades stocks in an experimental asset market while their level of cognitive control is exogenously manipulated by applying weak current stimulation to a control-related cortical region. We find that the stimulation significantly affects the participant’s cognitive control and tendency to exhibit the disposition effect. This result is also obtained for financial professionals. We thus provide evidence that cognitive control is important for the disposition effect. This paper was accepted by Bruno Biais, finance.

Abstract: The current pandemic era has given uncertainty to the countrys economic growth and resulted in many countries experiencing a drastic decline in share prices. This condition impacts investors perceptions of the funds that have invested in the stock market. This study investigates the effect of essential information and disposition effect on shifting decision investment with the character investors moderation as the moderator variable. A survey was conducted on 252 investors who have invested in the Indonesian stock exchange. The Data processing used the partial least square (PLS) technique. This study indicates that essential information for investors in the pandemic era can increase the disposition effect in deciding beneficial share ownership. The essential information obtained by investors in the covid era regarding stock market movements and its internal performance in the stock market list can increase investor shifting decisions. The disposition effect can have a significant effect on shifting decision investors. Essential information related to stock price movements and its internal performance affects investors courage to take risks and provide optimism for shifting decisions. Then the investor type does not affect the disposition effect on shifting decisions. This study contributes to the theory of financial behavior in decision making by considering psychological factors when uncertainty exists in the stock market.

Abstract: As China’s economy advances into a new stage of high-quality development driven by scientific and technological innovation, it is of great practical importance to probe what effects land disposition, which underpinned the previous round of rapid economic growth, and may have an exertion on developing innovation. Based on a deep exploration of the potential positive and negative influences of land disposition in relation to the effects of land finance on urban innovation, we employed a dynamic spatial Durbin model, along with panel data from 266 Chinese prefecture-level cities over the period 2004–2017. The empirical results show that the development of China’s urban innovation has had significant path dependence, spatial agglomeration, and inhibiting effects on neighboring cities, and these effects are attributed to inter-governmental competition and the Matthew effect. Overall, the combined impacts of land disposition modes on urban innovation have changed, from facilitative in the early stage to inhibitory at present. In the developed cities of east China, the facilitative effect of land disposition has weakened gradually, and tends to disappear entirely, while the change in impact over time in less developed mid-western cities is consistent with the national sample. This study broadens our understanding of the role of land disposition in China’s urban innovative development and has meaningful direct implications for policymakers.

Abstract: Investors are often inclined to keep losing stocks too long, despite this being irrational. This phenomenon is part of the disposition effect (“people ride losers too long, and sell winners too soon”). The current research examines the role of hope as a potential explanation of why people ride losers too long. Three correlational studies (1A, 1B, and 2) find that people's trait hope is positively associated with their inclination to keep losing stocks, regardless of their risk-seeking tendency (Study 2). Further, three experimental studies (3, 4, and 5) reveal that people are inclined to hold on to losing (vs. not-losing) stocks because of their hope to break even and not because of their hope to gain. Studies 4 and 5 provide process evidence confirming the role of hope and indicate potential interventions to decrease people's tendency to keep losing stocks by reducing the hope. The findings contribute to the limited empirical literature that has investigated how emotions influence the disposition effect by providing empirical evidence for the role of hope. Moreover, the findings add to the literature of hope by revealing its role in financial decision-making and show a “dark side” of this positive emotion.

Abstract: Abstract: The purpose of this research was to analyze the effect of financial literacy and behavioral bias on investment decisions in the millennial generation in DKI Jakarta. This research uses quantitative data by distributing questionnaires. The population of this research is people who live in DKI Jakarta and its surroundings. There are as many as 125 respondents in the research conducted. The data collection method used a questionnaire and for the data analysis method in this research using the SEM analysis tool. The findings of this research indicate that overconfidence bias and risk-aversion bias have a significant effect on investment decisions. Meanwhile, herding bias, disposition effect, and financial literacy have no significant effect on investment decisions

Abstract: Abstract The purpose of this study is to look at the impact of financial literacy and demographics on investor behavioral biases in Indonesia. Overconfidence, disposition effect, mental accounting, and herding bias were among the eight variables used in this study, which included four independent variables: financial literacy, age, occupation, and income, as well as four dependent variables: overconfidence, disposition effect, mental accounting, and herding bias. This is a sort of research that uses a quantitative technique to do basic research. The questionnaires were distributed to investors listed on the Indonesia Stock Exchange for this study. The findings reveal that gender and age influence overconfidence bias, that financial literacy and income level influence disposition, that financial literacy and age influence mental accounting, and that financial literacy and occupation influence herding prejudice.

Abstract: The aim of this article is to find out the linkages between financial literacy, behavioral biases, and stock market investment decisions. Further, the primary objective is divided into two parts; first, the relationship between financial literacy and behavioral biases, namely cognitive biases (representative bias, hindsight bias, mental accounting bias, and anchoring bias) and emotional biases (overconfidence, disposition, herding, and familiarity bias) was investigated. Second, the relationship between above stated behavioral biases and stock market investment decisions were explored. To satisfy the objectives of the study, a descriptive cross-sectional research design with judgmental sampling was followed. The data were collected from 477 Indian stock market investors. We found that financial literacy significantly negatively influences all the cognitive biases whereas it does not influence emotional biases. All the cognitive and emotional biases significantly impact the stock market investment decisions. Additionally, it was noticed financial literacy significantly reduces hindsight bias whereas overconfidence bias highly influences the stock market investment decisions.

Abstract: The current pandemic era has given uncertainty to the country's economic growth and resulted in many countries experiencing a drastic decline in share prices. This condition impacts investors' perceptions of the funds that have invested in the stock market. This study investigates the effect of essential information and disposition effect on shifting decision investment with the character investor's moderation as the moderator variable. A survey was conducted on 252 investors who have invested in the Indonesian stock exchange. The Data processing used the partial least square (PLS) technique. This study indicates that essential information for investors in the pandemic era can increase the disposition effect in deciding beneficial share ownership. The essential information obtained by investors in the covid era regarding stock market movements and its internal performance in the stock market list can increase investor shifting decisions. The disposition effect can have a significant effect on shifting decision investors. Essential information related to stock price movements and its internal performance affects investors' courage to take risks and provide optimism for shifting decisions. Then the investor type does not affect the disposition effect on shifting decisions. This study contributes to the theory of financial behavior in decision making by considering psychological factors when uncertainty exists in the stock market.

Abstract: Purpose: Digital financial inclusion era has brought Indonesian people to gain interest in financial sector by accessing more resources to financial literature. During Covid-19 Pandemic, there was a unique phenomenon occurred where the price was going down but the number of individual investors, dominated by millennial, was increasing. This paper aimed to examine the behavioral biases that may influence Indonesian millennial investors during investment decision making process. The main focus is examining possibility of given effects from overconfidence, disposition effect, and loss aversion of the Indonesian millennial investors to investment decision making during Covid-19 Pandemic, by also examining the mediating effect for financial literature. Method: Using purposive sampling, a total of 1,035 valid respondents were collected using Google Form questionnaire. Structural Equation Modeling (SEM) analysis was conducted as the quantitative chosen method to examine the condition. Result: Overconfidence, disposition effect, and loss aversion are proven to positively affect investment decisions for Indonesian Millennial Investors during Covid-19 Pandemic. Additionally, financial literature is also proven to receive the mediating effect from overconfidence to investment decision, over all other independent variables. This study is believed to broaden the investment insight, especially in terms of investment decision making process and behavioral bias.

Abstract: Behavioural finance is important component of investment decision making of the people. It is based on the psychology; attempt to understand how emotions and cognitive errors influence individual investors’ behaviours. This study sought to determine the impact levels of behavioural influences on the individual investor choices of securities at Colombo Stock Exchange (CSE). It was guided by one main objective seeking to determine the impact level of behavioural factors influences on the individual investors’ investment decisions at CSE. To meet the objectives of the study, a descriptive survey design was chosen. Primary data was collected using self-administrated questionnaires. It was based on 200 individuals selected through CSE Northern Province. The data analysis for this study was performed with the help of SPSS. This study used multiple regression and correlation analysis. To examine such impact of behavioural factors considered as the independent variable with the proxies of regret aversion, overconfidence, availability bias, past trends of stock, market information, buying and selling of other investors and individual investors’ decision-making is dependent variable. The findings reviled that the overconfidence, availability bias and past trends of stock have insignificant impact on investment decision of individual investors at CSE at 5 % significant level. The regret aversion, market information, buying and selling of other investors have significant impact on investment decision making of individual investors at CSE at 5 % significant level. The research, as overall, concluded that there is moderate significant impact of Northern province investors behavioral factors influence on individual investors’ decision making at CSE Sri Lanka

Abstract: With a market size in the multibillion of dollars, social trading platforms have, over the last decade or so, been gaining a strong foothold in individual investment. Users on these platforms can observe traders’ detailed transactions over time. They can also ‘‘follow’’ anyone of those traders, just like with other social media platforms, investing own money in accordance with the strategies of their trader of choice. In turn, traders have access to an abundance of real-time data, including those that view and follow them. In this paper, we investigate the intriguing question as to whether the disposition effect bias those individual traders typically experience in offline investment setting – i.e., exhibiting risk aversion for gains and risk seeking for losses, manifests in the social trading platform context. We also examine the impact on the disposition effect of two social features of the platform: (i) views to the traders’ page, which reflects the visible allocation of platform users’ attention to individual traders and (ii) followers of the traders, which reflects the allocation of money to mirror the trading allocations of traders. We construct a dataset of 400 traders and 80,000 trades over the period between January 2019 and May 2020 that we collect from Zulutrade, a leading social trading platform. Using a survival analysis methodology, we evaluate whether gains vs. losses exhibit different hazard rates for to sell transactions, and whether and how views and followers interact with gains vs. losses in impacting those hazard rates. We find traders to exhibit the disposition effect in the social trading context, with the disposition effect amplified with an increase in views and reduced with an increase in followers. Our findings have important implications for the design of social trading platforms and more broadly for the literature on decision-making biases in online contexts characterized by social features.

Abstract: Using monthly fund-level portfolio holdings data on Indian equity mutual funds, we explore the predictable patterns in the trading biases of fund managers induced by changing attention allocation patterns. In an emerging market setting, we investigate the tendency of fund managers to sell winners and increase their exposure to losing stocks. Their biases are examined during two states of economic cycles. We adjust for random choice probability while selecting funds for reasons unrelated to the disposition effect. Our research contributes to the relatively nascent psychology-based asset pricing literature by examining fund managers’ psychology concerning financial decision-making.

Abstract: When participating in the financial market, few investors can sustainably succeed in the market, most of them often make psychological mistakes that lead to failure. The article applies theories and synthesizes empirical studies to analyze common mistakes of individual traders based on the theory of behavioral finance, including: prospect theory, herding effect, house money effect, sunk costs, and overconfidence. The article uses qualitative methods combined with descriptive statistics on a sample of 120 individual investors who are directly trading on the financial market, using a convenience sampling method. The results show that the disposition effect has the strongest impact on investors' decisions, specifically, 81.3% of investors often close their profit positions too soon while the trend is still continuing. Hesitating when making decisions or trading with weak signal, being influenced by others also have a strong impact on the trader, the rest of the factors have a moderate impact. From those results, the article analyzes that the main cause of psychological deviations is "fear" inside each person. Investors close their profit positions early because of the regret aversion if losing that profit, they hesitate to make decisions because of the fear of making mistakes, affected by the herd effect is due to the isolation aversion. On that basis, the article proposes solutions to help investors control psychological factors to survive and succeed in their trading activities, the solution emphasizes self-discipline, planning, and a constant learning process.

Abstract: Abstract In this study, we explore the role of individual exposure to negative life events on the disposition effect (DE) – i.e., the tendency of traders in financial markets to sell assets at gain faster than those at a loss. We hypothesize that individual exposure to negative life events may influence the disposition effect through different behavioral mechanisms, namely trading volume reduction, better information processing, and emotions. In three studies, we combine a quasi-natural experiment by considering the disposition effect, as measured with individual financial data from a trading exercise, both before and during the COVID-19 pandemic and across individuals exposed to a different extent to COVID-19. We also manipulated and elicited the emergence of specific emotions from the exposure to COVID-19 and tested whether such emotions influence the DE. Our results show that individual exposure to negative life events will reduce the disposition effect, mainly via better information processing emotion. Negative life events further reduce the DE when anger is elicited in the individual decision-maker. JEL classification numbers: G11, G41. Keywords: Disposition effect, Negative life events, Experiment.

Abstract: Researchers examined anomalies in the market to understand the market dimensions. Prior studies considered the effects of biases on momentum strategy. Stock liquidity as one of the risk factors for assets was also considered by researchers. The purpose of this study is to examine the role of stock liquidity in the separately and jointly effect of anchoring bias and the disposition effect on momentum profit. The population of this study consists of all companies listed on the Tehran Stock Exchange. Based on systematic election sampling this study covers 136 companies over the period of 20072020. In this study, the effect of disposition effect is calculated using the approach of Greenblatt and Han (2005) and Frazzini (2006) and the anchorage bias is calculated according to George and Hwang (2004). This study calculates 84 Iranian Journal of Finance, 2021, Vol. 6, No. 1 (Soltani, F.) momentum profits according to Jegadeesh and Titman (1993). To test the hypotheses, multivariate regressions and the five-factor model of Fama and French (2015) have been used. The results of this study show that the disposition effect in stocks with low liquidity increases momentum profit. In addition, anchoring bias in stocks with low liquidity leads to an increase the momentum profit. Findings of this study document that the interaction effect of anchoring bias and disposition effect, while reinforcing each other, is also associated with increasing in momentum profit. Finally, when anchoring bias and disposition effect reinforce each other, and stocks have low liquidity, they do not increase momentum profits.

Abstract: Investor’s irrationality is an inevitable truth that has been over and over highlighted by using researchers [1]. Consequently, this look at is any other effort to assess the role of behavioral biases in financial choice making in Pakistan stock alternate (PSX). A survey questionnaire is designed and used to acquire responses the use of convenience sampling approach from pattern of 184 investor of PSX. Behavioral biases encompass overconfidence, anchoring, disposition, representativeness and availability bias impact of traders. Multiple regression models are used to check impact of five behavioral biases on investment decision. We want to test whether or not those biases overconfidence, anchoring, disposition, representativeness and availability bias effect have significant effective impact on investment decision or not. Primarily based on effects we conclude that whether or not there are lots adjustments in investment decision is because of behavioral biases. This look at will help financial advisors to better recommendation their customers. The only way to reduce these biases can be education and education of traders.