[vc_empty_space][vc_empty_space]
Reversal on disposition effect: Evidence from Indonesian stock trader behavior
Dharma W.A.a, Koesrindartoto D.P.a
a Institut Teknologi Bandung, Indonesia
[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_separator css=”.vc_custom_1624529070653{padding-top: 30px !important;padding-bottom: 30px !important;}”][/vc_column_inner][/vc_row_inner][vc_row_inner layout=”boxed”][vc_column_inner width=”3/4″ css=”.vc_custom_1624695412187{border-right-width: 1px !important;border-right-color: #dddddd !important;border-right-style: solid !important;border-radius: 1px !important;}”][vc_empty_space][megatron_heading title=”Abstract” size=”size-sm” text_align=”text-left”][vc_column_text]© 2018, Universiti Malaysia Sarawak. All Rights Reserved.One of the reasons why people afraid to participate in the Indonesia Stocks Market because a stereotype that capital market is gambling. This kind of stereotype, in fact, maybe because people that have already invest or trade in the market experienced a disposition effect. Aspara and Hofman (2015) conduct research about how the disposition effect can be reversed by giving a stimulus to the investor personal responsibility. However, their analysis was not explain the behavior of the respondent in no treatment and treatment condition. In this research, the author wants to conduct a study whether the disposition effect occurs in Indonesia and what kind of demographic factor that affect it. Also, this study also intends to explain the behavior of investors when they perform disposition effect and the reversal of it by looking to the prospect of the respondent using the Cumulative Prospect Theory from Tversky and Kahneman (1992). Based on 182 responses form direct player in the market, statistically is proved that the disposition effect also occurs in Indonesia, and it is can be reverted by giving a stimulus about personal responsibility. The behavior of investors when facing disposition effect and reversal treatment also can be explained by their value function.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Author keywords” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Behavior Finance,Disposition effect,Prospect theory[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Funding details” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”DOI” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Widget Plumx[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][/vc_column][/vc_row]