JED, Vol 14, No.2, August 2012, pp. 52-71 | DOI: 10.33301/2012.14.02.03
Empirical Research of Disposition Effects in Vietnam’s Stock Market
Abstract:This paper examines some cognitive biases of Vietnamese stock investors by ana- lyzing trading records for 1,201 accounts at a brokerage firm. These investors tend
to make poor trading decisions by selling good stocks and buying bad stocks. They demonstrate a significant reference to holding the losing stocks and selling the win- ing stocks which is known as the disposition effect. It provokes many implications for researchers, market practitioners and policy makers.
Keywords:Disposition effect, extrapolation bias, prospect theory, behavioral finance.