Recently, The Financial Review (ABS Three Star), a journal sponsored by Wiley Press and the Eastern Financial Association, The paper Are mutual fund investors loss averse? Evidence from China published by Ms. Jiang Jie (first author) and Ms. Wu Yanran (corresponding author) became one of the most-cited papers in fund investing for 2021-22 (citation data from Clarivate Analytics). The paper was published online in September 2020 and officially in May 2021.

The Financial Review, the premier journal in fund investment research, aims to publish original empirical, theoretical and methodological research that sheds new light on important issues in all areas of financial economics. Research topics include asset pricing, banking, corporate finance, corporate governance, derivatives, financial intermediation, financial research methods, investment management, market microstructure, mergers and acquisitions, risk management, risk measurement, security pricing and market equilibrium.

Jiang Jie, David G. Shrider, Huangwen Ting, Wu Yanran (Corresponding author): Are mutual fund investors loss averse? Evidence from China, FINANCIAL REVIEW，22 September 2020.

　　Abstract: Research shows that many investors are loss averse (reluctant to sell investments that have lost value). However, there is open debate about whether mutual fund investors suffer from loss aversion. We use over 300,000 Chinese mutual fund investor accounts from five open-end funds to test for loss aversion using survival analysis controlling for time-varying covariates (Cox analysis). We find strong evidence of loss aversion as these investors are between 60% and 91% less likely to sell a fund that is down in value across the five funds. We also find that more sophisticated investors are less loss averse.

　　Link：https://doi.org/10.1111/fire.12252

Provided by Disciplinary Research Office

Edited by Sun Yue

Reviewed by Cai Hongbo