The effects of prior trading performance have on risk-taking of subsequent trading – The house money effect

• Main Author: LENZ TAN KOON BIN
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: House money effect; Disposition effect; Corporate Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/etd_coll/445; https://ink.library.smu.edu.sg/context/etd_coll/article/1443/viewcontent/PhDGM_Lenz_Tan_Dissertation_Defense_signed.pdf
• Institution: Singapore Management University

This study tests for house money effect on 2,030 non-professional FX investors trading through an Australian Financial Service provider. The results indicate that, in general, investors display a positive relationship between prior gains and the change in subsequent weekly risk-taking - the house mo...