Fully Closed: Individual Responses to Realized Gains and Losses

• 成果类型: Article
• 署名作者: Meyer, Steffen; Pagel, Michaela
• 署名单位: University of Southern Denmark; Danish Finance Institute; Columbia University; National Bureau of Economic Research; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13122
• 发表日期: 2022
• 页码: 1529-1585
• 关键词: SUBSEQUENT RISK-TAKING; field evidence; personal-experience; portfolio choice; prospect-theory; loss aversion; TWICE SHY; consumption; PARTICIPATION; preferences

摘要

We analyze how individuals reinvest realized capital gains and losses exploiting plausibly exogenous sales due to mutual fund liquidations. Individuals reinvest 83% if a forced sale results in a gain relative to the initial investment; but reinvest only 40% in the event of a loss. This difference is statistically significant for more than six months and arises because many individuals forced to realize a loss choose not to reinvest anything and some even exit the stock market altogether. Individuals treat realized losses differently from paper losses and are discouraged from investing more and participating in the stock market.