Mohammad Hasan Ebrahimi Sarv Olia; Mohammad javad Salimi; Hamze Ghouchifard
Abstract
Given the importance of the growth and development of the capital market in a country, knowing the factors that affect people's equity investment can help Capital market development and growth. Myopic Loss Aversion (MLA) is one of the factors introduced by Benartzi and Thaler (1995). In this regard, ...
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Given the importance of the growth and development of the capital market in a country, knowing the factors that affect people's equity investment can help Capital market development and growth. Myopic Loss Aversion (MLA) is one of the factors introduced by Benartzi and Thaler (1995). In this regard, the present study, after measuring myopia and the loss aversion coefficient of real, active investors in the Tehran Stock Exchange, investigated the effect of Myopic Loss Aversion on equity investing by pooling regression method. The sample consisted of 403 investors who answered the research questions twice in 6 months in 2018.The results of this study indicate that the median value of the loss aversion coefficient for investors is 2.17. The results of this research show that more myopic loss-averse investors that more change and evaluate their stock portfolios; invest less in stocks and more myopic loss-averse investors that less change and evaluate their stock portfolios; invest more in stocks This finding is consistent with the theory of Myopic Loss Aversion. The findings also showed that men invest more in equities than women and fundamental analysts less than technical analysts.This study emphasizes the importance of myopic loss aversion in the stock market and considers the reduction of myopic loss aversion as a factor in increasing equity investment.
