Myopic loss aversion, personality, and gender

Robert B. Durand, Lucia Fung, Manapon Limkriangkrai

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Investor propensity to exhibit myopic loss aversion (MLA) varies. The authors’ analysis, which follows and extends the experimental design of Gneezy and Potters [1997] and Haigh and List [2005], finds that extraversion, one of Norman’s Big 5 personality traits, is associated with variation in subjects’ MLA. Extraversion, a trait positively associated with risk, reduces MLA. There is also some indication that neuroticism seems to have a positive association with MLA. Gender does not appear to have robust association with MLA. The study findings suggest that it may be advantageous to use readily measurable psychological constructs rather than gender per se in both experimental and field research.

Original languageEnglish
Number of pages15
JournalJournal of Behavioral Finance
DOIs
Publication statusAccepted/In press - 2019

Keywords

  • Gender
  • Myopic loss aversion
  • Personality traits

Cite this

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Myopic loss aversion, personality, and gender. / Durand, Robert B.; Fung, Lucia; Limkriangkrai, Manapon.

In: Journal of Behavioral Finance, 2019.

Research output: Contribution to journalArticleResearchpeer-review

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AB - Investor propensity to exhibit myopic loss aversion (MLA) varies. The authors’ analysis, which follows and extends the experimental design of Gneezy and Potters [1997] and Haigh and List [2005], finds that extraversion, one of Norman’s Big 5 personality traits, is associated with variation in subjects’ MLA. Extraversion, a trait positively associated with risk, reduces MLA. There is also some indication that neuroticism seems to have a positive association with MLA. Gender does not appear to have robust association with MLA. The study findings suggest that it may be advantageous to use readily measurable psychological constructs rather than gender per se in both experimental and field research.

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