WIAS Research Project Seminar Series:
Waseda Organizational and Financial Economics Seminar
“Naive Learning, Investor Sophistication and Repurchase Decisions” (9/28)
| 講演者 Speaker |
Peiran Jiao (Post-Doctoral Research Fellow, Department of Economics and the Nuffield College, University of Oxford, U.K.) Profile (Please click here) |
|---|---|
| 日 時 Date & Time |
Monday, 28 September 2015, 13:00 – 14:30 |
| 会 場 Venue |
Rm. 1111 on the 11th floor, Building #11, Waseda University |
| 主 旨 Outline |
Empirical evidence suggests that individual investors disproportionately repurchase more stocks previously sold at gain than those sold at loss, as if following some naïve learning rule that hurts their performance. This paper investigates the heterogeneity of this bias across individuals and whether investor sophistication/experience attenuates or eliminates this bias. Using individual accounts data from a large US discount brokerage firm, I find that more sophisticated investors exhibit considerably smaller bias, whereas accumulation of experience through executing trades has a similar effect. However, as the tendency of avoiding previously sold losers is almost completely eliminated by sophistication/experience, the tendency of repurchasing prior winners, though diminished, still persists. An examination of the performance of the stocks repurchased reveals that sophisticated investors are more careful in selecting prior losers to repurchase, but the prior winners they repurchased significantly underperform. Additional evidence suggests that attention constraint and counterfactual learning are more salient problems for less sophisticated investors when they repurchase. |
| プログラム Schedule |
13：00 Opening Remarks （Hideaki Miyajima (Waseda University)） 13：05 Presentation 14：05 Question-and-answer session 14：25 Concluding Remarks（Hideaki Miyajima (Waseda University)） |
| 対 象 Prospected Audience |
Faculty and staff members of a university, grad students, the general publics |
| 主 催 Organizer |
Research Institute of Business Administration,Waseda University Waseda Institute for Advanced Study,Waseda University |
| 申込み Registration |
No Pre-Registration Required. |
