How Hope of Breaking Even Makes People Cling on Losing Stocks

Xiyueyao Luo*, Femke Van Horen, Kobe Millet, Marcel Zeelenberg

*Corresponding author for this work

Research output: Contribution to ConferencePosterAcademic

Abstract

Four studies found that hope to break even explains the disposition effect: people’s hope to break even predicts the tendency to keep the losing stock; people who hold losing (vs. not-losing) stocks had a stronger hope to break (but not hope to make profit) even and thus were more likely to keep the losing stock; reducing the hope attenuates the disposition effect.
Original languageEnglish
Publication statusPublished - Oct 2020
EventAssociation for Consumer Research 51st Annual Conference - Virtual
Duration: 1 Oct 20203 Oct 2020

Conference

ConferenceAssociation for Consumer Research 51st Annual Conference
Period1/10/203/10/20

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