DOI: 10.24311/jabes/2013.216.10

Abstract

This paper aims to investigate whether or not the disposition effect exists in the Vietnam?s stock market, and if so, which factors influence that effect. The authors employ the transaction data, which is from June 1, 2010 through June 30, 2012, of 100 customers of a securities company. Within this period, there are 27,591 transactions which are worth VND2,204 billion. The results reveal that the willingness to sell bullish stocks is 8.5% higher than the willingness to sell bearish ones. Male investors are less affected by the disposition effect than females. Accounts with huge transaction values rarely face this effect; meanwhile, the higher the number of transactions, the stronger the disposition effect.

Keywords

Disposition Effect; Realized Capital Gains; Realized Capital Losses; Individual Investors.