Research seminars

Rolling Mental Accounts

Finance

Speaker: David Salomon
Marshall University

17 September 2015


When investors sell one asset and quickly buy another, their trades are consistent with rolling the mental account into the new asset rather than closing it. On days when an investor buys and sells (~31% of observations) there is no disposition effect, consistent with no disutility from realizing a loss. When trading the new position, investors exhibit a disposition effect based on the amount invested in the original position. Mutual funds exhibit a larger disposition effect when unable to roll accounts due to outflows. Sales occurring with a purchase have better performance, suggesting that avoiding the emotion of closing a mental account at a loss improves decisions.

Finance

Speaker: Adriano Rampini

23 May 2019 - T105 - From 2:00 pm to 3:15 pm


Finance

Speaker: Luke Taylor

16 May 2019 - T105 - From 2:00 pm to 3:15 pm


Finance

Speaker: Jessica Jeffers

18 April 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Emil Verner

4 April 2019 - T104 - From 2:00 pm to 3:15 pm


Finance

Speaker: Ramona Dagostino

14 March 2019 - T104 - From 2:00 pm to 3:15 pm



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