Culture and the disposition effect

Bastian Breitmayer, Tim Hasso, Matthias Pelster

Research output: Contribution to journalArticleResearchpeer-review

12 Citations (Scopus)
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We study the relationship between national culture and the disposition effect by investigating international differences in the degree of investors’ disposition effect. We utilize brokerage data of 387,993 traders from 83 countries and find great variation in the degree of the disposition effect across the world. We find that the cultural dimensions of long-term orientation and indulgence help to explain why certain nationalities are more prone to the disposition effect. We also find support on an international level for the role of age and gender in explaining the disposition effect.
Original languageEnglish
Article number108653
Number of pages11
JournalEconomics Letters
Early online date29 Aug 2019
Publication statusPublished - Nov 2019


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