The effect of investment and withdrawal horizons on myopic loss aversion

Michael Guillemette, David Blanchett, Michael Finke

Research output: Contribution to journalArticle

Abstract

Using unique survey data, we find that a longer investment horizon (6–10 years and 11+ years) reduces the likelihood of exhibiting myopic loss aversion (MLA) compared to an investment horizon of less than 2 years. In addition, we find that investors with higher levels of assets under management (AUM) are less likely to exhibit MLA compared to the lowest AUM quartile.

Original languageEnglish
Pages (from-to)787-790
Number of pages4
JournalApplied Economics Letters
Volume26
Issue number10
DOIs
StatePublished - Jun 7 2019

Keywords

  • Myopic loss aversion
  • assets under management
  • investment horizon
  • portfolio

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