Jurnal Aplikasi Manajemen dan Bisnis (JAMB)
Vol. 3 No. 2 (2023): Jurnal Aplikasi Manajemen dan Bisnis April 2023

Investigating the Disposition Effect among Young Investors: An Integrative Literature Review on Cognitive Biases

Wahyu Fahrul Ridho (UPN "Veteran" Jawa Timur)
Yanda Bara Kusuma (UPN "Veteran" Jawa Timur)



Article Info

Publish Date
16 Jun 2023

Abstract

This literature review elucidates the disposition effect, a pervasive behavioral bias causing investors to prematurely sell appreciating assets while retaining depreciating ones, within the context of young investors. In the evolving financial landscape, characterized by an increasing influx of young, often less experienced market participants, understanding the cognitive biases influencing their investment decisions is imperative. This study examines influencing factors and growing body of research regarding cognitive bias in investing among young investors especially disposition effect. It has been found from various literature that disposition effect is prevalent among young and novice investors compared to their counterpart. Despite numerous studies on this topic, research gaps remain regarding the disposition effect among young investors in emerging markets and across different asset classes. Future research should aim to bridge these gaps to foster a generation of competent and informed young investors. This review highlights the need for effective financial education programs tailored to the unique traits and behaviors of young investors, aiding in better investment decision-making and contributing to the health and stability of financial markets.

Copyrights © 2023






Journal Info

Abbrev

JAMB

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Aplikasi Manajemen dan Bisnis (JAMB) is a journal to managed of Departement Administration Business, Politeknik Negeri Sriwijaya, for aims to serve as a medium of information and exchange of scientific articles between teaching staff, alumni, students, practitioners and observers of science ...