Earticle

We study the disposition effect in institutional traders by analyzing a unique bond trading dataset of a prominent financial firm in South Korea. The data contains the trade records of RP and Proprietary trading books for the years 2012 and 2013. Overall, Proportion of Gains Realized (PGR) is not meaningfully larger than the Proportion of Losses Realized (PLR) – that is, there is little evidence of the disposition effect, where the reference is the purchase price, or to alternative specifications. We explain these findings with trader discipline, which mitigates reference dependence and aversion to loss realization. We posit that the results have important implications for market efficiency, since institutional traders play a very important role in the price discovery process of financial markets.

The purpose of this study is to structurally investigate the influence of the club selection attribute of golf club consumers on the propensity for brand dependence and consumption propensity for the reference group. The subject of the study was golf consumers, and 283 data were used for the final analysis. The hypothesis was tested by Structural Equation Model (SEM) using Amos. the results are as follow. First, only symbolism among the three club selection attributes (symbolism, functionality and practicality, price) had a positive effect on the propensity to depend on the brand. Second, among the three factors of club selection attributes (symbolism, functionality and practicality, price), two factors, symbolism, functionality and practicality, had a positive effect on the following consumption of the reference group. Third, the propensity to depend on the trademark had a positive effect on the following consumption of the reference group.