Publication: An experimental economic study of loss aversion in stock trading decisions
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Issued Date
2021-07-16
Resource Type
Language
eng
File Type
application/pdf
Access Rights
Open Access
Rights
ผลงานนี้เผยแพร่ภายใต้ สัญญาอนุญาตครีเอทีฟคอมมอนส์แบบ แสดงที่มา-ไม่ใช้เพื่อการค้า-ไม่ดัดแปลง 4.0 (CC BY-NC-ND 4.0)
Rights Holder(s)
Srinakharinwirot University
Suggested Citation
Thanchanok Aramrueng, ธัญชนก อร่ามเรือง (2021). An experimental economic study of loss aversion in stock trading decisions. Retrieved from: https://hdl.handle.net/20.500.14740/52516
Alternative Title(s)
การศึกษาความเกรงกลัวการสูญเสียในการตัดสินใจซื้อขายหุ้นด้วยเศรษฐศาสตร์เชิงทดลอง
Author(s)
Advisor(s)
Abstract
The disposition effect is a form of behavioral bias that tends to result in investors holding on to their losing stocks for too long and selling winning stocks too soon. It can be explained by the Behavioral Economics theory of Loss Aversion. Even though this kind of behavioral bias has been studied in a variety of countries, none of them have investigated the disposition effect in the case of Thailand. Therefore, the main objective of this study is to test the disposition effect among Thais by applying the experimental economic approaches of Weber and Camerer (1998) and Odean (1998), while also including the findings of questionnaires and interviews. A simulation stock trading market was set up to test the disposition effect of participants regardless of whether or not they had stock trading experienced. The subjects were required to trade among six stocks in 14 trading periods. There were also three more periods added to test how different types of news impacted the trading decisions of the subjects. In addition, the socio-economic factors that affect the disposition effect behavior were analyzed using an Econometric Binary Choices model. Regarding the results, it was found that this experiment can exhibit the disposition effect of subjects in terms of overall and individual measurement. In normal stock trading situations, it was found that over 70% of subjects showed clear signs of the disposition effect, while the disposition effect behavior seemed to decrease after they received the fictional news.
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Description
MASTER OF ARTS (M.A.)
ศิลปศาสตรมหาบัณฑิต (ศศ.ม.)
ศิลปศาสตรมหาบัณฑิต (ศศ.ม.)
Degree Grantor(s)
Srinakharinwirot University