The Library
The meerkat effect : personality and market returns affect investors’ portfolio monitoring behaviour
Tools
Gherzi, Svetlana, Egan, Dan, Stewart, Neil, Haisley, Emily and Ayton, Peter (2014) The meerkat effect : personality and market returns affect investors’ portfolio monitoring behaviour. Journal of Economic Behavior & Organization, Volume 107 . pp. 512-526. doi:10.1016/j.jebo.2014.07.013 ISSN 0167-2681.
|
PDF
WRAP_1-s2.0-S0167268114002145-main.pdf - Published Version - Requires a PDF viewer. Available under License Creative Commons Attribution. Download (1404Kb) | Preview |
Official URL: http://dx.doi.org/10.1016/j.jebo.2014.07.013
Abstract
Karlsson, Loewenstein and Seppi (2009) found that, following market downswings, investors are less likely to login to monitor their retirement portfolios. They concluded that, rather like (apocryphal) ostriches sticking their heads in the sand, investors avoid unpleasant information by reducing portfolio monitoring in response to news of negative market movement. We apply generalised non-linear mixed effects models to test for this selective information monitoring at an individual level in a new sample of active online investors. We see different behaviour in this new sample. We find that investors increase their portfolio monitoring following both positive and daily negative market returns, behaving more like hyper-vigilant meerkats than head-in-the-sand ostriches. This pattern persists for logins not resulting in trades and weekend logins when markets are closed. Moreover, an investor personality trait – neuroticism – moderates the pattern of portfolio monitoring suggesting that market – driven variation in portfolio monitoring is attributable to psychological factors.
Item Type: | Journal Article | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Subjects: | Q Science > QC Physics | ||||||||||
Divisions: | Faculty of Science, Engineering and Medicine > Science > Psychology | ||||||||||
Library of Congress Subject Headings (LCSH): | Finance -- Psychological apsects, Individual investors | ||||||||||
Journal or Publication Title: | Journal of Economic Behavior & Organization | ||||||||||
Publisher: | Elsevier BV * North-Holland | ||||||||||
ISSN: | 0167-2681 | ||||||||||
Official Date: | November 2014 | ||||||||||
Dates: |
|
||||||||||
Volume: | Volume 107 | ||||||||||
Number of Pages: | 15 | ||||||||||
Page Range: | pp. 512-526 | ||||||||||
DOI: | 10.1016/j.jebo.2014.07.013 | ||||||||||
Status: | Peer Reviewed | ||||||||||
Publication Status: | Published | ||||||||||
Access rights to Published version: | Open Access (Creative Commons) | ||||||||||
Date of first compliant deposit: | 28 December 2015 | ||||||||||
Date of first compliant Open Access: | 28 December 2015 | ||||||||||
Funder: | Economic and Social Research Council (Great Britain) (ESRC), Leverhulme Trust (LT) | ||||||||||
Grant number: | RES-062-23-0952 (ESRC), RES-000-22-3339 (ESRC), and ES/K002201/1 (ESRC), RP2012-V-022 (LT) |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |
Downloads
Downloads per month over past year