The Disposition Effect And New Media Financial Information Flow

Disposition effect,as a kind of psychological behavior deviation,not only affect the individuals without experience,but also affect many mature market participants,such as professional traders,fund managers and business executives.Specifically,the disposal effect refers to the fact that when investors make stock investments,they always sell the profitable stocks first,and continue to hold the losses in the stock,which is the "gain and loss" effect.This also reflects from the behavioral economics point of view that stock investors are risk avoiders when they are in a profitable state,while those who are in the loss state are risk preference.This also from the perspective of behavioral economics reflects when is profitable stock investors is risk avoidance,and risk appetite when losing money.Timely detection and actively coping with the risk appetite psychology of the loss status can effectively control risks and enhance the robustness of the whole financial system.With the development of science and technology,the transmission efficiency of financial information is constantly improved,and financial information is not only spread by traditional media such as newspapers and TV.The development of the Internet allows investors to obtain valuable information streams,such as news information and investment methods,through new media such as financial app.In terms of the measurement of the disposal effect,three measures are adopted to measure the level of the disposal effect of the subjects,and the invisible behavior deviation is expressed through quantitative methods.In the disposal effect of experimental design,by using the experimental paradigm of RCTs,this paper studies on whether the new medias' financial information flow can affect the disposition effect level of digital immigrants and natives.To define whether the disposition effect exists in human subjects for a start,for the further research,this paper segments digital native samples and samples of digital immigrants,imposing new media on their common financial information flow variables.By getting information,subjects were observed whether it can help to reduce the impact of the disposal effect,and the two types of subjects have different level of disposition effect.Helping majority of investors,through the information receiving,increases investment experience,leading to the result of reducing the level of disposal effect.And it aims to analyze the financial information of new media is for the influence of the traditional concept of behavior deviation disposition effect,and for the investors how to avoid the effects of behavioral biases are proposed.