Dr. Shannon’s new publication in Journal of Socio-Economics

Asst. Prof. Randall Shannon, CMMU faculty and MM program chair and Mark A. DeWeaver from Quantrarian Capital Management LLC. have published his new academic article in the upcoming issue of the Journal of Socio-Economics.  Below is the abstract of the article: 

We argue that existing explanations for the stock-market investor’s disposition to “ride losers too long” are unsatisfactory because they abstract from any role for information processing. We propose instead that the disposition effect is a special case of “waning vigilance:” investors pay less attention to new information and analysis when making decisions about loss makers and are therefore slower to sell them when arguments in favor of holding cease to be valid. Results from a Thai individual investor survey are presented as empirical evidence in support of the hypothesis that vigilance is reduced following losses . For full article click here.