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Does Gender and Age Affect Investor Performance and the Disposition Effect?

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  • Tõnn Talpsepp

    (Tallinn School of Economics and Business Administration, Tallinn University of Technology)

Abstract

The focus of the paper is on individual investor trading characteristics, the disposition effect bias and its links to performance. The analysis is based on the individual investor subsample of the complete transaction data of the Estonian stock market. The Cox proportional hazard model, along with PGR-PLR analysis, is used to measure the disposition effect and trading intensity. I show that different gender and age groups have different trading intensity and security holding periods, which realise in differences in the disposition effect bias and performance. Portfolios of older age groups and female investors perform better. Lower portfolio returns are connected with a higher level of trading intensity, shorter holding periods and a higher level of the disposition effect bias.

Suggested Citation

  • Tõnn Talpsepp, 2010. "Does Gender and Age Affect Investor Performance and the Disposition Effect?," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 2(1).
    • Handle: RePEc:ttu:rebcee:25
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    Cited by:

    1. Kristjan Liivamägi, 2015. "Investor Education and Portfolio Diversification on the Stock Market," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 7(1).
    2. Tarvo Vaarmets & Kristjan Liivamägi & Tõnn Talpsepp, 2014. "The brilliant mind of investors," TUT Economic Research Series 15, Department of Finance and Economics, Tallinn University of Technology.
    3. Daniel W. Richards & Janette Rutterford & Devendra Kodwani & Mark Fenton-O'Creevy, 2017. "Stock market investors' use of stop losses and the disposition effect," The European Journal of Finance, Taylor & Francis Journals, vol. 23(2), pages 130-152, January.
    4. Fahmi Faiqotul Falah & Nadia Asandimitra, 2023. "The Influence of Herding, Anchoring, Disposition, Personal Income, and Financial Literacy on Generation Z's Investment Decision Making in Surabaya City," Technium Social Sciences Journal, Technium Science, vol. 45(1), pages 210-221, July.
    5. Signe Rosenberg, 2015. "The Impact of a Change in Real Estate Value on Private Consumption in Estonia," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 7(2).
    6. Marco Pleßner, 2017. "The disposition effect: a survey," Management Review Quarterly, Springer, vol. 67(1), pages 1-30, February.
    7. Talpsepp, Tõnn & Liivamägi, Kristjan & Vaarmets, Tarvo, 2020. "Academic abilities, education and performance in the stock market," Journal of Banking & Finance, Elsevier, vol. 117(C).
    8. Kahya, Evrim Hilal & Ekinci, Cumhur, 2022. "Disposition bias among Borsa Istanbul investors: What do we know about type, size and trading frequency?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    9. Kristjan Liivamägi & Tarvo Vaarmets & Tõnn Talpsepp, 2014. "Masters of the Stock Market," TUT Economic Research Series 16, Department of Finance and Economics, Tallinn University of Technology.
    10. Vaarmets, Tarvo & Liivamägi, Kristjan & Talpsepp, Tõnn, 2019. "From academic abilities to occupation: What drives stock market participation?," Emerging Markets Review, Elsevier, vol. 39(C), pages 83-100.

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