The effect of anticipated and experienced regret and pride on investors' future selling decisions : [Version November 2012]

This paper investigates the effect of anticipated/experienced regret and pride on individual investors’ decisions to hold or sell a winning or losing investment, in the form of the disposition effect. As expected the res
This paper investigates the effect of anticipated/experienced regret and pride on individual investors’ decisions to hold or sell a winning or losing investment, in the form of the disposition effect. As expected the results suggest that in the loss domain, low anticipated regret predicts a greater probability of selling a losing investment. While in the gain domain, high anticipated pride indicates a greater probability of selling a winning investment. The effects of high experienced regret/pride on the selling probability are found as well. An unexpected finding is that regret (pride) seems to be not only relevant for the loss (gain) domain, but also for the gain (loss) domain. In addition, this paper presents evidence of interconnectedness between anticipated and experienced emotions. The authors discuss the implications of these findings and possible avenues for further research.
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Metadaten
Author:Carmen Lee, Roman Kräussl, Leo Paas
URN:urn:nbn:de:hebis:30:3-286329
Parent Title (German):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2012,17
Series (Serial Number):CFS working paper series (2012, 17)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Language:English
Year of Completion:2012
Year of first Publication:2012
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2013/02/04
Tag:Disposition Effect; Pride; Regret; Risky Decision
Issue:Version November 2012
Pagenumber:54
Note:
Stand: November 2012
HeBIS PPN:328030112
Institutes:Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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